S&T Country Report - Albania - WBC-INCO Net

• Proprietary and managerial restructuring of companies and the national
economy as a whole; and
• Development of capital market and corporate management culture.
Development funds such as the Development Fund of the Republic of Montenegro
are common instrument of state support to entrepreneurship. Such funds may
operate using the state budget funds, privatization proceeds, donations and foreign
financial support. Development Fund earns its income primarily by selling shares
from its portfolio, collecting dividend from profitable companies and interest from
loans approved to SMEs, which means that whole income is of non-budgetary type.
In its future activities, priorities of the Fund will be the following:
• Financing of SMEs investment projects (focus is on growing micro enterprises
and SMEs), which is in accordance with the Government’s policy and
Economic Reforms Agenda;
• Support of agriculture and food production projects and support of tourism
projects;
• Short-term support of SMEs;
• Full appreciation of regional component in development of the Republic of
Montenegro (the priority in financing will have the projects from northern part
of the Republic); and
• Financing the infrastructure and ecology projects (public companies, local
government and private companies).
Basic goals of the Fund are as follows:
• Privatization of economy in Montenegro;
• Achievement of higher level of efficiency in company operating;
• Creation of favourable environment for investments of both foreign and
domestic investors;
• Integration in international economic and financial institutions; and
• Increase of national income and living standard of citizens in Montenegro.
From 1995 to the end of 2006, the Development Fund of Montenegro financed 642
investment projects with the estimated value of EUR 180.15 million, where the share
of Development Fund of Montenegro was EUR 36.03 million. Realizing these
investment programmes, the precondition for employment of cca 7,452 persons was
created. Apart from the above-mentioned, in 2006 the Fund has begun with financing
the infrastructure and environmental projects of local self-governments and public
enterprises. Thus, the Government through the Fund tries to solve the urgent
infrastructure and environmental issues of local self-governments.
page 25/MNE