On April 03, 2025, in a session chaired by Prime Minister Milojko Spajić, the Government of Montenegro approved the Draft Law on the Credit Guarantee Fund of Montenegro.

"With the adoption of this law, the legal framework is established for the creation and launch of the Credit Guarantee Fund of Montenegro—an independent and autonomous institution aimed at improving access to financing, primarily for entrepreneurs, micro, small, and medium-sized enterprises (MSMEs), women business owners, as well as individuals engaged in economic activities based on registration with the competent government authorities. This includes agricultural producers registered under the Ministry of Agriculture, who are recognized as a group facing the greatest obstacles in accessing financing from credit institutions," the statement reads.

The initial capital for the Credit Guarantee Fund will be provided by the Government in the amount of €10.6 million.

The main objective, as stated, is to stimulate and accelerate the country's economic development through the Fund's activities, increasing local economic activity by supporting business entities that currently face limited or difficult access to credit.

"Additionally, this mechanism will activate a segment of the market that has high-quality projects and programs but, due to a lack of sufficient collateral for traditional financing, absence of a credit history, or other reasons not directly related to the financed project itself, is unable to secure external financing for its activities," the Government stated.

The European Bank for Reconstruction and Development (EBRD) is a key donor, supporting the Government in its efforts to establish the Fund, through technical assistance provided by Crimson Capital. Crimson Capital and the EBRD are now working with the Government of Montenegro and key stakeholders to ensure successful establishment and operations of the MCGF.

A link to the draft law can be found here and press release here.