IGOR LUKSIC Minister of Finance	ZORAN VUKCEVIC Directorate of Small and Medium Enterprises

While its Serb neighbor has maintained the dinar, Montenegro has adopted the euro and pursued a policy of economic reforms which have already resulted in increased stability and brought a 5% average growth last year.

Privatization in Montenegro has been described as the most successful of all countries in transition. More than 82 percent of state capital has now been privatized, with the motto: “We don’t sell our companies, we are buying good owners!” Adoption of the euro in 2002 and the government’s focus on building a stable, open economy in harmony with the EU has attracted investors from across Europe, Japan, Singapore and the USA. “There is a combination of privatization, stock exchange and greenfield investment,” says Minister of Finance Igor Luksic. “Our fiscal policies match the Maastricht criteria and we want to create a system of high development and sustainability without barriers.”

Net foreign direct investment in the first half of 2005 reached €167 million - seven times greater than in the same period in 2004 - and results were boosted by the sale of the state’s Telekom Montenegro, KAP aluminum plant and Podgorica Banka. Credit potential of licensed banks increased by 37 percent in 2005 and the total volume of trade tripled on both Montenegrin stock exchanges.

Providing practical support and knowledge for new companies, the Directorate for Development of Small and Medium Enterprises regards the stimulation of entrepreneurship as vital. “We want to help the private sector,” says Director Zoran Vukcevic. “Besides tourism, which is a priority, there are also excellent opportunities in agriculture, food production, industry, mining and wood processing.” Mr. Luksic adds, “We need to show people there is a positive future ahead. Come to Montenegro, invest and enjoy.”