The leadership of the Development Bank (RB) is dedicated to supporting IPARD projects this year, as declared by its representatives, who noted a strong interest in these initiatives.

“We anticipate that the IPARD III program will enable us to assist numerous agricultural farms and businesses in rural regions,” stated Development Bank representatives to the Mina-business agency.

They mentioned that the Investment and Development Fund, now succeeded by Razvojna banka, completed 139 projects via IPARD last year, totaling 8.5 million euros. This reflects an increase of 105 projects and a 30 percent rise in allocated funds compared to 2023. Since 2015, the IDF has executed 553 placements through the IPARD program, amounting to over 40 million euros.

The RB emphasized that the IPARD project is crucial for the Montenegrin economy, providing grants and favorable credit lines to enhance agriculture and rural development.

“These programs enable farmers and entrepreneurs to modernize their production, boost competitiveness, and align with EU standards, facilitating access to new markets,” the RB stated.

The development bank focuses on IPARD due to its potential to stimulate sustainable economic growth, generate new jobs, and lessen reliance on agricultural imports.

“The main advantage of the IPARD project lies in the modernization and enhancement of agriculture and rural areas through investments that boost productivity, competitiveness, and sustainability. Grants and favorable loans for technological upgrades, quality enhancements, and sustainable production are accessible,” remarked the RB.

The RB highlighted its long-standing partnership with the IPARD program and its successful collaboration with the Ministry of Agriculture, Forestry and Water Management, primarily in project support.

“For all agricultural producers and businesses involved in the IPARD grant scheme of the Ministry of Agriculture, we have established attractive financing conditions. Our offer includes the IPARD credit line for agricultural development, which features favorable financing conditions with a fixed interest rate of four percent, repayment periods of up to 12 years, and grace periods of up to four years, depending on project complexity,” the RB elaborated.

The announced loans are aimed at supporting agricultural farms and companies in line with the directives from the relevant Ministry.

“Eligible loan beneficiaries under this credit line include agricultural producers, as well as micro, small, and medium-sized enterprises that have received confirmation from the Ministry of Agriculture recognizing them as participants in the IPARD project,” clarified the RB.

They also mentioned their efforts to make funding more accessible to agricultural producers and ease the application process.

“We have simplified procedures for approving loan funds for the IPARD program to maximize their utilization. A system has been established whereby most required documentation is directly obtained from the Ministry of Agriculture, streamlining the process,” said the RB.

They specified that all potential clients must have a signed grant agreement with the Ministry of Agriculture relevant to the IPARD project. Additionally, final beneficiaries of loan agreements must provide a certificate from the Revenue and Customs Administration confirming that they meet their tax obligations.

“RB’s expert teams evaluate each project individually, allowing for a tailored approach to understand potential investments and their economic viability, enabling the best decision-making in the interests of loan beneficiaries. The Development Bank assesses each request separately,” the bank explained.

RB accepts instruments such as bills of exchange, administrative restrictions, real estate mortgages, and other collateral typically used in banking as security for loans.

“Loan beneficiaries, upon meeting all conditions and implementing their investments in accordance with IPARD regulations, are eligible for a refund of specified amounts, which reduces their loan exposure. Activities related to claiming refunds are managed by the Ministry of Agriculture,” the RB added.

They believe that integrating agriculture with trade and tourism through diversifying economic activities in rural areas is increasingly essential.

“As demand for agricultural products grows, driven by significant projects in the tourism sector, generous incentives in the form of grant support and favorable lending conditions offer compelling reasons for many farmers to pursue their business aspirations through RB credit arrangements and the IPARD mechanism,” concluded the bank.

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