What is your opinion on the current state of Montenegrin Economy?
Highly positive! In the past few years Montenegro features steady economy growth, which is only expected given that economy is managed by strengthening of specific areas that are seen as comparative advantages. First of all I speak of development tourism industry, construction and widening of infrastructure, production of energy and production area. When speaking directly to decision makers I always stress that it’s necessary to pay more attention to provision of services and financial assistance, and I’m glad that slowly they understand. This direction of development of economy does not require huge investment, and yields fast and long-term results.
We need efficient strategy of human resources development, which is a crucial development strategy for each country. In that sense, at the University of Mediterranean we are preparing new faculty programmes and courses that will match the needs of today’s economy and global technological development.
When talking about the financial services as a means for boosting of economy, what do you have in mind?
I am talking about possibility for Montenegro to become attractive financial destination for the big international funds and investment banking. And in order to do that, we have to implement and align regulations with European Union and other international markets. Above all I am talking about MIFID regulation for financial services and investment banking, and PSD that is regulating electronic payments. If we have in mind that in today’s economy funds represent main source of capital, this could be the opportunity for Montenegro to position itself as the regional finance center – enabling new job opportunities and gaining of skills for our citizens, which would make them compatible and attractive human resource in the demanding and ever growing financial markets, together with considerable tax incomes for the state budget.
In Your opinion, how much income can Montenegro expect from E commerce and financial services?
E commerce can bring Montenegro more income than tourism. Having in mind experiences of Malta and Cyprus, I am sure that income in this field can be over one billion. Owners of the companies that use e-commerce are investment bankers, and owners of the payment institutions, they are also owners of yachts, luxury villas and private jets. This means that if we invest in this sector, we would create synergy with tourism, we would have growing demand for high skilled IT professionals, digital marketing and digital services.
Atlas Bank is a good example, since e-commerce represents an important source of its income. We introduced e-commerce in Montenegro, we have the necessary skills, experience and technologies.
Few months ago we got international e-commerce license from the Union Pay from China, the largest card association in the world, and soon we’ll start cooperation with German Wirecard. This company is one of the world’s leaders in the electronic payments.
On the November 28th we will have the inauguration of the first payment transaction in the branch office of Atlas Bank in Atlas Center, with representatives of China Union Pay, representatives of the Embassy of People’s Republic of China in Montenegro, and Chinese companies that operate in Montenegro and the region.
Recently you were offered to implement this project in one of the countries in the region. Which country are we talking about, and what are your plans there?
It is Macedonia. We are waiting for the feasibility study about conditions and potentials for e-commerce in Macedonia, and afterwards we will decide. It is common that ideas from the entrepreneurs and visionary leaders get recognition abroad, while at home the recognition comes ex post.
President Đukanović announced recently in Herceg Novi a solution for the Meljine issue. What does that mean?
We are currently in the process of negotiation, and we are on a good path to reach settlement with the Government. Certain media interest groups tried to create a context in which they would realize their short term interests. Atlas Group participated in the privatization that was absolutely legitimate and straightforward. However, unresolved property issues, financial crisis, discrepancy between local and state administration, bureaucratic mindset and the intentions of interest groups have obstructed this project. We believe that now we have the preconditions for its development.
What are the future plans of Atlas Group?
Atlas Group is a complex and diversified international system, with over 1000 employees, contributing to Montenegrin economy with app. 7 million Euros in taxes and contributions. We started operations almost 3 decades ago as financial company, and we will base our further progress in developing of sophisticated international financial operations – online trading, financial markets and services.
We have very valuable properties at the coast of Montenegro, and we are in the process of negotiating the partnership with foreign investors. We obtained urban planning permission for the project Punta Mimosa, worth more than 500 million Euros. We are expecting the finalization of the property dispute with Kosovo and Serbia regarding location Kamenovo, and we are resolving property disputes and removing mortgages by foreign banks at the location of Adriatic Fair, so we could start developing this project as well.
Is Atlas Bank stable – what are the requests from Central Bank of Montenegro, and will the bank meet them?
Atlas bank has recently undergone the regular and all-encompassing control by its regulator, which we consider as a very useful cooperation. Experience with the Central Bank has always been very positive because of the high level of professionality and cooperation. Liquidity of the bank is stable, daily and decadal liquidity levels surpass the defined levels.
Most of the activities prescribed by the Central Bank have already been met. Atlas Bank will keep strengthening its financial performances. First of all increase of the capital assets and the quality of placement, better results in debt collection, as well as strengthening its market position in general.
What is your comment on the prosecution against the companies that have opened the accounts in Your bank?
We are completely ready to cooperate and deliver expert help in finding the possible irregularities in the e-commerce operations of the clients of the Bank. Considering that we are talking about e- commerce, which represents trading via internet, we deem that this field of commerce is still not known enough to the regulatory agencies. In general we think that these investors should be handled with caution, because we risk gaining a bad reputation for Montenegro among the investors interested in doing business in our country.
In this sense, our Bank can be considered a benchmark that will send the signal to the important investors from this ever growing sector of capital market who are searching for the new financial destination in Western Balkans. Everyone would like to have such investors, and competition is huge.
These are the reasons for regulatory agencies – Central Bank, prosecution, Ministry of finance – to work on building professional capacities with the needed technological knowledge in digital economy. If this does not happen, they won’t have anything to regulate in this field, and that would cost Montenegro a lot, missed opportunities and lost profit combined. I hope we will understand that digital economy is fastest growing field in the world. Ireland took advantage of this opportunity, only 8 years ago they were facing bankruptcy and now they have the fastest growing GDP rate in the EU. Also, they stopped the brain drain and managed to bring back young experts.
For years now You have been participating at Summit100, Sarajevo Business Forum and other business conferences that gather business and political leaders from the EU region and USA. This summer you were one of the panelists in the EU Western Balkans Summit in Sofia. What is the main message of these gatherings?
Our region can be part of the developed world, and for that we need to work together. This requires stability, educated work force and funds for empowering entrepreneurship. Long term prosperity is possible only if we give equal possibility to all citizens to participate in it.
In which way does politics in Montenegro influence business?
In the West the politics stimulates business, and Montenegro is heading towards the West. Sustainable economic development depends on the right balance between politics and business. And for reaching the right balance the key is open and proactive relation between politics and business. And above all trust. Without the trust between business and politics there is no real growth.
With the representatives of the Government we have productive relations that resulted in Atlas Group investing more than 200 million in different projects in Montenegro in past decade, and contributed to state budget with more than 100 million euro in tax payments. We still need less bureaucracy and more predictability and consistency, coordinated actions between local and state administration, we still need less complicated and less costly administrative procedures. For Montenegro it is crucial to keep building the image of investment destination. In this context we should complement the brave move of the Government to introduce economic citizenship.
In which fields do You see possible growth of the small and medium enterprises?
Above all food production, ethno villages, ethno motels and restaurants. When we sell to foreign tourists locally produced cheese, water, meat and fruits and vegetables this represents internal export and the great potential. Montenegro is losing great amount of Euros through import. We import more than 1 billion Euros of food, and water import alone is more than 35 million euro.
I also see a huge potential in digital and start up economy and companies. Modern technologies and 4th industrial revolution enable everyone with the right knowledge and skills to make the difference.
Recently, during promotion of the Atlas MasterCard Platinum, you said that You hope to avoid the destiny of Galileo Galilei. What did you mean?
Galileo Galilei was the target of the inquisition because he claimed that the Earth is the part of heliocentric system. I intended that comparison as a joke, but I also wanted to say that new ideas are often not understood and that it would not be smart to put an end to 4th industrial revolution out of ignorance. I am stressing that it is very important for Montenegro to be a part of digital revolution and technological progress. I show this in practice as well, via Atlas Bank operations which lean mostly on digital economy through e-commerce. And this is the object of great misunderstanding in Montenegro.
