03 October 2018 - "After joining the NATO Alliance, Montenegro has become an even more secure investment destination, which means potential investors now may count on the support of all segments of Montenegrin society. Having in mind the extremely favorable geographic position, our country can be and even is an investment “hub” for the regional and broader market," as reported by Branimir Gvozedović, the vice-president of the Parliament of Montenegro.
Gvozdenović is attending the Summit100 Business Leaders of Southeast Europe, held in Belgrade. Speaking on the benefits Montenegro has provided with the aim of attracting investors, he especially emphasized the tax and other kinds of reliefs that resulted in the opening of more than 100 new hotels over the last 5 years.
"The state will not stop with the improvements, as it plans to continuously enhance the business environment. The Parliament of Montenegro will support the government’s proposals concerning further strengthening of competitiveness in Montenegrin business environment," noted Gvozdenović.
“In the following period, the state and the local self-government will strive to design other preconditions for attracting new investors, making their investments cost-effective for the shortest period possible, which would positively affect the whole region,” concluded Gvozdenović.
Montenegrin NATO membership strengthened macroeconomic stability and built up investor's trust, but also had an impact on tourism and the overall image of the country. That reflects best in the increase in the inflow of foreign direct investments, which amounted 244,4 million EUR for the seven months of this year.
“The biggest inflow of FDI came from NATO Members: Italy (16,5% of the total inflow), Hungary (12%), Turkey (7,1%) and Belgium (3,3 %),” reported the representatives of the Central Bank of Montenegro.
This inflow of capital contributed to the economic growth and the Central Bank particularly points out the importance FDI have.
“They are a very important source of funds and they create new jobs, increase the export and, therefore, reduce the foreign trade deficit, which is one of the shortcomings of our economy. That way, foreign investments improve the competitiveness of the domestic economy. They also enable the transfer of new technologies and knowledge that we are going to adopt from investors,” noted the representatives of the Central Bank.
“Montenegro is now perceived as a safer destination and that, along with other factors, is very important for tourists. NATO membership increased the income generated in tourism. Also, effects of NATO can be seen in the improvement of international reputation with international financial institutions and private investors, which could, indirectly, influence creation of more favorable conditions of borrowing at the international financial market,” concluded the representatives of the CB.
Source: Cafe del Montenegro
