Montenegro’s Investment Development Fund (IRF) will secure €120mn in cheap loans to local companies in 2021, daily Vijesti reported.
The IRF was established in 2009 to provide cheap loans and grants to local enterprises, aiming to support the country’s sustainable economic growth. It mainly uses funds provided by international institutions such as the EBRD, the EIB, the World Bank and the IBRD.
In 2020, IRF has secured more than €280mn in cheap loans to back companies that need liquidity amid the coronacrisis.
Recently, the IRF has come into the spotlight after its former head Zoran Vukcevic was arrested for alleged abuse of office on February 4, along with former agriculture ministers Petar Ivanovic and Budimir Mugosa, who were charged with abuse of office.
The detainees are suspected of abusing their positions in the distribution of money provided from the Abu Dhabi Fund for Development. The fund provided €50mn to Montenegro in 2015 for loans for the agriculture sector.
In the following days, several businessmen were also detained and the government claimed that Radoje Zugic, who is currently central bank governor, has also been involved in the fraud at the time when he has been a financial minister. Zugic has denied the accusation.
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