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Law on investing in MA: Here’s what it foresees

Montenegro Airlines

The proposal for the Law on investing in consolidation and development of the Podgorica–based airline ‘Montenegro Airlines’, which envisages a €155 million investment over the next six years, has been submitted to the Parliament of Montenegro for further procedure.

The Government of Montenegro assessed that this law created basic preconditions for market operations of the national airline and therefore numerous positive effects on our entire economy. “This Law regulates conditions, manner and the procedure of obligations settlement that Montenegro Airlines has towards the state of Montenegro and third parties, as well as the source and method of providing funds for these purposes,” the document adopted by the govt suggests.

In addition, it seems that the national airline is going to settle all the obligations amounting to 25,000,000 by converting the debt into the share capital of the company, as well as the debt owing to the State in the amount of up to €9 million.

The State will pay off the debt of Montenegro Airlines owing to the Airports of Montenegro amounting to up to €32,000,000 by the end of the budgetary year – 2020, whereas Montenegro Airlines is obliged to settle all the debts on this basis, with no delays.

Moreover, the State will take over due liabilities of the national carrier towards Hipotekarna banka a.d. Podgorica in the amount of €6,800,000.

It was also suggested, inter alia, that the State would ensure up to €11,000,000 through the 2020 State Budget for renting the aircraft and motors, settling the overall liabilities of the company based on the final and enforceable judicial decisions as well as for other obligations from labor relations, and costs incurred from business operations.

In the period from 2021 to 2024, the State will provide funds to Montenegro Airlines in the net amount of up to 50,000,000 for the purchase of an aircraft.

The procurement procedure for a new aircraft will start in 2020 and will be completely carried out by MA.

 

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