The Investment and Development Fund of Montenegro has announced new financial support programs for 2020, which provides for 36 lines of credit, through which the IDF plans to invest at least EUR 200 million in entrepreneurship development, start-up businesses, support for existing micro, small and medium-sized enterprises. The interest rate on these loans ranges from 0% to 4.5%, the repayment period is up to 15 years, with a grace period of up to 5 years.
In the 10 years of its existence, the Investment and Development Fund invested the first billion EUR in the Montenegrin economy, and in the previous year EUR 241 million.
Continuous economic growth and development in order to improve the quality of living standards, as a strategic goal of Montenegro, has been a priority in the work of the IDF in the past period, which is reflected in over 16,000 new jobs created and preserved. Proud of the achieved result, because the realized funds are intended to create opportunities for the continued growth and development of the Montenegrin economy, the plan for this year was to provide a placement of at least EUR 200 million.
The funds are intended for the development of entrepreneurship, by supporting specific target groups, such as young people, beginners, women, college graduates, technology surpluses, individual agricultural producers, artisans, innovative entrepreneurship, ICT businesses, cluster production. This year funds were also provided for target groups, which also offer interest-free credit lines for: high school students, technology surpluses and start-up businesses where women are holders.
Support for priority development sectors, such as: sustainable and health tourism, sustainable agriculture and food production, wood processing, production, renewable energy and energy efficiency, new materials and sustainable technologies and ICT are a constant focus of the Investment and Development Fund. Thus, in the coming year, the planned funds will be invested in support of improving the liquidity of the company, supporting green field and brown field investments, as well as infrastructure development.
In its wide range of financial programs, IDF has also prepared two new support programs for the COSME program and the EASI program. For those entrepreneurs who have a good idea but do not have sufficient collateral to secure the loan, IDF, in cooperation with the European Investment Fund, has provided guarantee schemes in the amount of EUR 80 million under the COSME program.
This instrument, which guarantees up to 50 percent of loans, will give all those who want to do business and anyone with the potential to do business. A guarantee fund is also available for the poorest people. Anyone wishing to start a business, IDF will help in cooperation with the European Investment Fund through program of the employment and social innovation Program ‘Easi’.