The Development Bank of Montenegro reported a remarkable 35 percent increase in placements during the first quarter of this year, compared to the same period last year when it operated as the Investment and Development Fund (IDF).

Nikola Tripković, the President of the Board of Directors, announced plans for enhanced support to the Montenegrin economy this year, totaling 200 million euros—an increase of 33 percent over last year’s projections.

This initiative will be executed through 16 financial support programs aimed at bolstering the Montenegrin economy, aligning with the government’s economic policies and development priorities.

“Our start to the year has been ambitious. In the first quarter alone, we achieved placements exceeding 46.5 million euros, marking a 35 percent rise compared to the same quarter last year. We are introducing new support programs designated for entrepreneurs, as well as micro, small, medium-sized, and mid-cap companies, which feature the most favorable financing conditions, including extended repayment terms and the option of a grace period with fixed interest rates,” stated Tripković.

He further noted that the Development Bank has implemented special incentives, such as interest rate reductions, for companies pursuing projects in underdeveloped municipalities and those in the northern region.

Tripković highlighted that interest rates have already been lowered by 0.5 percentage points for investments this year compared to the previous year, with continuous improvements in lending conditions expected.

“It’s essential to emphasize our focus on investments. By increasing investment levels, we aim to enhance citizens’ living standards and lower the unemployment rate. Our role will extend beyond providing credit; we aspire to become market educators, identifying and fostering opportunities for innovation and progress,” he emphasized.

According to him, the Development Bank’s primary objective is not profit generation but fostering development.

“We aim to create new value, thus contributing to the growth of the Montenegrin economy by financing sustainable and quality business initiatives,” Tripković asserted.

He also mentioned that the Development Bank continued its operations without interruption during the transformation period, ensuring that all activities begun at the IRF proceeded seamlessly and were concluded within the new framework of the Development Bank.

“Since the new year, we have operated without any service disruptions, successfully completing a complex registration process and organizational restructuring. I take pride in our team’s ability to navigate this transformation while achieving significant growth in placements during the first quarter,” Tripković shared.

The Development Bank is committed to meeting all obligations under the Law on the Development Bank, adhering to established timelines.

“Our goal is to redefine our market presence and develop a customer-centric, proactive, dynamic, and adaptable institution. We are enhancing our client relationships through a proactive approach to improve their overall experience, offering education and guidance for easier access to financial resources,” said Tripković.

He added that the focus will be on nurturing business development by having loan officers act as small business partners, assisting clients in making informed financial decisions.

Tripković confirmed that the Development Bank will continue supporting women in business, youth, individual agricultural producers, and other vulnerable groups facing challenges in accessing financial resources.

“We aspire to lead the investment cycle and foster development to boost local production, which will aid in reducing imports and increasing exports. To that end, we are developing a credit line focused on production support. Moving forward, our emphasis will be on enhancing the competitiveness of micro, small, and medium enterprises. Our priority is to maintain existing jobs and create new ones through ongoing collaboration with relevant ministries, the economy, and local governments,” he explained.

The Development Bank’s initiatives focus on financing priority sectors, including tourism, agriculture, manufacturing, and energy, while also supporting entrepreneurship development for specific target groups such as youth, business starters, women, and individual agricultural producers. Additionally, they are committed to promoting sustainable development through green and digital transitions and balanced regional development to improve overall quality of life.

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