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UAE – Montenegro: Agricultural development credit agreement

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Montenegro will expand its agricultural exports and create jobs thanks to an agreement for a 50 million EUR loan from the Abu Dhabi Fund for Development (ADFD). Mohammed Al Suwaidi, the fund’s director general, signed the loan agreement with prof. PhD Petar Ivanovic, Montenegro’s minister of agriculture and rural development and Director of the Investment and Development Fund Zoran Vukčević.

Following the signing ceremony, Minister Ivanović said it is about a friendly, rather than a commercial or financial arrangement, bearing in mind that the Montenegrin farmers will get the opportunity to export their products to the United Arab Emirates.

“In order to help them, we have started today intensive discussions with representatives of agencies and institutions involved in the issuance of certificates for export and standards establishment”

The ADFD’s loan provides for a seventeen-year repayment period, four-year grace period, and 2.5% of interest rate. The loan terms will allow not only new investments based on modern technologies, but also new jobs creation, reaching standards and gradual increase in exports.

Mr Ivanovic said the loan would boost agricultural production in his country.

“The loan agreement that we signed today is very important to strengthen the agricultural potential that we already have”

Mr Ivanovic said Montenegrin goat meat used to be exported to the Middle East until Yugoslavia’s loss of customers in the region led to the loss of agricultural producers in Montenegro.

“So now we are in the process where we are trying to increase the agricultural production, to focus more on products where we can be competitive and to export those products“

The minister said the loan from Abu Dhabi would help to create new jobs in the sector and expand exports.

“We are targeting 2,000 new jobs (…) the loan will unify the cultural producers through the clusters operations, and we have to cooperate with others to increase the value chain, to develop the food processing industry in Montenegro”

Mr Al Suwaidi said financing agricultural projects in Montenegro would significantly boost the development of agricultural sector across the country.

Source: Government of Montenegro and the Ministry of Agriculture and Rural Development (Ivanovic’s statement for UAE’s the National Web Portal)


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