Sitemap

White Book

The Pandemic Exposed The Montenegrin Economy’s Vulnerability

We cannot undo the damage caused in the past, but it is up to us to give our all for us to emerge from the crisis as soon as possible. That’s why we should focus on removing barriers to doing business and jointly combating the virus

The country fell significantly on the Ease of doing business index last year compared to 2019, as a result of the coronavirus pandemic that impacted negatively on the Montenegrin economy and tourism sector, noted Montenegrin Foreign Investors Council President Christoph Schoen.

Speaking at the presentation of the 11th edition of the annual White Book, Schoen said that last year had been characterised by huge challenges that were caused directly by the global crisis in response to the pandemic, but which had existed before and had only sharpened.

“Coming to the fore in particular was the vulnerability of the Montenegrin economy caused by its strong focus on tourism, so it’s no surprise that the Ease of doing business index fell significantly compared to 2019,” said the MFIC president speaking at a press conference.

Montenegro last year had an Ease of doing business index rating of 6.4, on a scale of one to ten. It had stood at 6.9 in 2019. Schoen explained that the pandemic had led to social and economic impacts resulting in the closures of a significant number of companies and job losses.

We cannot undo the damage done in the past, but it is up to us to do our best to get out of the crisis as soon as possible. We need to focus on a timely dialogue between all stakeholders, in order to provide full support to improving operations,” said Schoen, who is also CEO of Addiko Bank.

According to him, the focus should be on removing barriers to doing business and jointly combating the virus.

“We strongly support the measures of the Government that aim to make Montenegro a secure destination as soon as possible, as well as vaccination, which is key to recovery,” assessed Schoen.

MFIC Executive Director Ivan Radulović said that the significant fall in the ease of doing business was to be expected because of the COVID crisis.

“There were evaluations of six sectors, relating to telecommunications, ICT, banking and finance, tourism, production and energy, trade and retail, and transport and logistics, which recorded declines,” noted Radulović.

Schoen: “We strongly support the measures of the Government that aim to make Montenegro a secure destination as soon as possible, as well as vaccination, which is key to recovery”

He said that last year’s most significant decline was recorded in the tourism sector, which fell from a rating of 6.9 to 6.1.

Due to the pandemic, last year proved to be extremely difficult for the tourism sector. MFIC gave the sector a rating of 6.2, while companies operating within the sector gave it the lowest rating, of 5.3.

“When it comes to the rule of law, the drop is significant. It returns us to the period of 2013,” added Radulović.

He said that it was essential to have a predictable business environment and the rule of law as basic preconditions for further improvement of the business environment.

MFIC recommendations relate to the need to more efficiently implement reforms, further modernise the work of the cadastral register and notary services, as well as the creation of the foundations for further investments in infrastructure. It is also necessary to continue implementing measures aimed at increasing labour market freedom and flexibility, the policy of improving the work of the administration and raising efficiency at all levels, further developing the Montenegrin economy and society through digitalisation, as a policy of development and transformation. MFIC recommended forming the basis for the further public finance policy, making special reference to new investment activities that could contribute to stabilising public finances by reducing the deficit and maintaining the level of public debt.

MFIC Board Member and Saga Montenegro Executive Director Ivan Bojanović said that the ICT sector doesn’t demonstrate significant changes when viewed in terms of the figures contained in the White Book.

“The ICT sector was one of the few not to suffer from any problems during that period. A certain level of growth exists, which should mean that we have no right to complain, because we preserved jobs,” said Bojanović.

He also noted that, on the other hand, all digitalisation processes were linked to the situation with the Coronavirus pandemic. “It is encouraging that we had a meeting with the competent ministry, at which we jointly agreed that the need exists to amend legal regulations for all areas that could be part of digitalisation,” said Bojanović. He explained that they offered to make a donation on behalf of the Council, which was accepted by the Government, and that, accordingly, all information regarding the coronavirus and scheduling vaccinations will be made available to citizens via Viber.

MFIC Board Member and Crnogorska Komercijalna Banka (CKB) Executive Director Pal Kovacs said that all ratings fell last year, mostly as a result of the impact of the pandemic.

“Due to the epidemiological situation, we proposed the digitalisation of all services, particularly banking procedures that relate to loan applications,” added Kovacs.

He considers close cooperation with the ICT sector as being important, because they have many common goals regarding the digitalisation of the administration and public services.

MFIC members reiterated the fact that the White Book is a key document in which foreign investors highlight the main challenges confronting them in their operations in Montenegro.

Related Articles

Zdravko Krivokapić, Prime Minister Of Montenegro

It Takes Two To Feed The Growth

The crisis represents an opportunity for Montenegro to try to build more a resilient, inclusive and green post-pandemic recovery. The government is open to...

Christoph Schoen, MFIC President (Executive Director Of Addiko Bank)

Focused On Future Growth

We believe that the Montenegrin economy will continue to be strongly influenced by investments in the coming years, and that the Government will have...

Jakov Milatović, Montenegrin Minister For Economic Development

Economic Diversification Is Our Imperative

The Montenegrin economy is awaited by full recovery in the following period, on the basis of the government’s strong reform processes, new investments, economic...

Jacco Landsmeer, Owner, Ekonomik Accountants

Our Values Are Our Strength

We don’t follow the traditional route of the market, in order to meet existing market conditions and play along. Rather we’ve been creating our...

Radoje Žugić, Governor Of The Central Bank Of Montenegro

We Preserved Economic Stability

We can state with satisfaction that the central bank reacted appropriately under the conditions of heightened uncertainty caused by the COVID-19 pandemic and succeeded...

Nikola Tripković, Executive Director Of Coca-Cola HBC Montenegro

Devoted To Consumers And The Community

I believe that, with our arrival on the Montenegrin market and stable operations, we signalled to many investors that this country is a good...

Stjepan Udovičić, CEO, Crnogorski Telekom

We Want Our Customers To Feel They’re In Good Hands

We are leading the society in the direction of digitalisation as a company that enables any customer in the country to connect to all...

Ana Marojević, Founder And Executive Director Of The Fly Montenegro Group

Ready To Fly

We want to become a globally recognisable brand in aviation and are ready to put in creative and dedicated work to turn that idea...

More...

The Jadar Project And All Administrative Acts Related To Rio Tinto Have Been Abolished

Prime Minister Ana Brnabic announced tonight that the government at today's session revoked the decree and spatial plan of the special purpose area for...

Schneider Electric Recognized In Corporate Knights’ Global 100 For The 11th Year In A Row

Schneider Electric, the leader in the digital transformation of energy management and automation, has earned its place in the top ranks of Corporate Knights’...

Philip Morris Awarded “Top Employer” Certificate For the Seventh Year in a Row

For the seventh time in a row, Philip Morris Serbia has been awarded the “Top Employer Serbia 2022” Award from the Netherlands-based international independent...

Arthur D. Little Expands Into The Balkans With New Office In Serbia

Arthur D. Little (ADL) has opened a new office in Belgrade, Serbia. It will be managed by Bela Virag, Managing Partner of ADL Austria,...

News

European Commission: Better Rules for Organic Producers

Obtaining a certificate for the production of organic food should be easier for small farmers from January 1st this...

Anti-Vaccine Activists March In D.C. – City That Mandates Coronavirus Vaccination – To Protest Mandates

Thousands of protesters from across the country — including some of the biggest names in the anti-vaccination movement — descended on...

Joint Statement From The Embassies Of The United States, The United Kingdom, And The Federal Republic Of Germany

We reject allegations that our countries are financing political or environmental protests in Serbia.  These claims do not reflect...

The Jadar Project And All Administrative Acts Related To Rio Tinto Have Been Abolished

Prime Minister Ana Brnabic announced tonight that the government at today's session revoked the decree and spatial plan of...

Schneider Electric Recognized In Corporate Knights’ Global 100 For The 11th Year In A Row

Schneider Electric, the leader in the digital transformation of energy management and automation, has earned its place in the...

European Commission: Better Rules for Organic Producers

Obtaining a certificate for the production of organic food should be easier for small farmers from January 1st this...

Anti-Vaccine Activists March In D.C. – City That Mandates Coronavirus Vaccination – To Protest Mandates

Thousands of protesters from across the country — including some of the biggest names in the anti-vaccination movement — descended on...

Joint Statement From The Embassies Of The United States, The United Kingdom, And The Federal Republic Of Germany

We reject allegations that our countries are financing political or environmental protests in Serbia.  These claims do not reflect...

The Jadar Project And All Administrative Acts Related To Rio Tinto Have Been Abolished

Prime Minister Ana Brnabic announced tonight that the government at today's session revoked the decree and spatial plan of...

Schneider Electric Recognized In Corporate Knights’ Global 100 For The 11th Year In A Row

Schneider Electric, the leader in the digital transformation of energy management and automation, has earned its place in the...

European Commission: Better Rules for Organic Producers

Obtaining a certificate for the production of organic food should be easier for small farmers from January 1st this...

Anti-Vaccine Activists March In D.C. – City That Mandates Coronavirus Vaccination – To Protest Mandates

Thousands of protesters from across the country — including some of the biggest names in the anti-vaccination movement — descended on...

Joint Statement From The Embassies Of The United States, The United Kingdom, And The Federal Republic Of Germany

We reject allegations that our countries are financing political or environmental protests in Serbia.  These claims do not reflect...

The Jadar Project And All Administrative Acts Related To Rio Tinto Have Been Abolished

Prime Minister Ana Brnabic announced tonight that the government at today's session revoked the decree and spatial plan of...

Schneider Electric Recognized In Corporate Knights’ Global 100 For The 11th Year In A Row

Schneider Electric, the leader in the digital transformation of energy management and automation, has earned its place in the...