Economic Policy of Montenegro for 2010

Published date: 02.12.2009 09:16 | Author: Sektor za ekonomsku politiku i razvoj

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Strong impacts of economic and financial crisis on Montenegrin economy in 2009 creating difficulties in maintaining the liquidity in the banking sector, subsequently overflowing into the real sector accompanied by all complexities of multiple connections in a number of debtor - creditor relations, causing the weakening of economic activity downgrading basic macro - economic indicators. The crises trend indicating its impact during the year had shown some late effects against developed economies and some systems in the region. In the light of the above, it was assessed that the first half of 2010 will depend on the recession processes, while beneficial effects of implemented economic policy measures will be felt in the second half of the year, restoring economic activity and creating conditions for the establishment of the real economic growth. Narrowed budgetary framework for 2010, with cost - saving and rationalization measures, will represent the objective limit to stronger budgetary support aimed at development. One of positive features is the preservation of fiscal policy principles and orientation, focusing on creation of conditions for reducing business barriers to entrepreneurial initiatives and new investments, aimed at strengthening aggregate demand elements of the commercial and households sector. Credit support, particularly in the sector of small and medium-sized enterprises, will assist in improving special measures which on the other hand will strengthen the environment and safeguarding measures for investments in order to direct banking business policies to programmes and projects in the economy. In the light of the above, it should be emphasized the importance of operational credit lines with the European Investment Bank and the German Development Bank and the realization of these funds through the implementation of programmes and projects...