On July 25, 2024, the Governor Central Bank of Montenegro, the Deputy Prime Minister for Economic Policy and Minister of Economic Development, the Head of the EBRD office in Montenegro and Crimson Capital’s Managing Director met to discuss establishment of the Montenegro Credit Guarantee Fund (MCGF). During the meeting, the Government of Montenegro (GoM) endorsed MCGF’s establishment, which will be an independent guarantee fund that will be sustainable and will operate in accordance with best international practices.

Irena Radović, Governor of the Central Bank of Montenegro, stated that “The establishment of the Credit Guarantee Fund is extremely important for Montenegro`s financial system and the economy because it will provide additional support for the financing of entrepreneurs, micro, small and medium-sized enterprises, start-ups, women and young people in business, thus encouraging their further development and prosperity of Montenegro`s economy

The Head of the EBRD Office in Montenegro, Remon Zakaria noted that “The Credit Guarantee Fund will target potential clients which will further activate the banking system potential, especially towards micro, small and medium-sized enterprises.”

According to Michael Gold, Managing Director of Crimson Capital, "The Montenegro Credit Guarantee Fund will dramatically improve access to finance to those that need it most, micro and small enterprises, women owned businesses and other underserved businesses, sectors and regions."

The meeting follows work undertaken by Crimson Capital, with funding from EBRD, to develop a roadmap for MCGF, considering optimal legal form(s); documents required for establishment and obtaining necessary approvals; ownership and corporate governance; board, management and staffing; reserve capital and leverage; operational budget; financial projections; primary policies and procedures, financial reporting requirements and template guarantee contracts with the partner financial institutions; target beneficiaries; range of loans, guarantee percentage(s) and pricing policies for the guarantees; reserves policy; and technical specifications and user requirements for the management information system.

Crimson Capital and the EBRD are now working with the Government of Montenegro and key stakeholders to support successful establishment and operations of the MCGF.

Crimson Capital previously helped design, structure and operationalize the highly successful Kosovo Credit Guarantee Fund.

A link to the press release about the meeting can be found on the website of the Central Bank Montenegro, by clicking here.