Brussels, 02/10/2008 (Agence Europe) - The European Investment Bank (EIB) announced on 1 October that it is to lend €30 million to finance projects implemented by small and medium-sized enterprises and local authorities in Montenegro. The loan will support investments in the areas of environmental protection, rational use of energy, industry and services, including tourism, as well as projects helping to upgrade local and regional infrastructure.
This is the first EIB line of credit provided to a partner financing institution in Montenegro: Hypo Alpe-Adria-Bank AD Podgorica - a well established bank with a densely developed network of branches in the country. It will serve to further develop the SME sector in the context of the recent strong growth of the economy in Montenegro and help to meet the growing demand from the private sector for finance for productive investments. The loan can also finance infrastructure projects undertaken by local authorities.
The previous day, the EIB decided to provide five loans amounting to €20 million for projects in the sectors of transport, energy and the environment. €7 million will go to financing the rehabilitation of the Bar - Podgorica - Belgrade railway line and the purchase of new rolling stock. Another €5 million loan will support the “Montenegro Water and Sanitation” programme. The remaining €12 million will go to projects to refurbish roads. Work has already begun on these projects. (O.L./transl.rt)