Montenegro: Government Approves Draft Law on Investment in ‘Montenegro Airlines’
The Government of Montenegro has approved a Draft Law on Investing in the Consolidation and Development of the Company for Air Transport of Passengers and Goods ‘Montenegro Airlines’ a.d. Podgorica (“Draft Law”). The Government has now forwarded the Draft Law to the country’s Assembly for further consideration.
In order to ensure the sustainability and stability of the business of the national air carrier as a company of special importance for the country, the Draft Law regulates the conditions and procedure for the settlement of Montenegro Airlines’ obligations.
The Draft Law envisages recapitalization of the airline, both to cover the company’s due liabilities and to invest in its development.
By converting debt into share capital, the airline will settle its debts to the state and third parties.
Around EUR 155 million will be invested in Montenegro Airlines. EUR 50 million of that amount will be invested in the purchase of new passenger planes and EUR 8.8 million in the restoration of engines on airplanes owned and/or used by the Airline Company.
The Draft Law creates the basic preconditions for the operation of the Montenegrin national air carrier. Apparently, this will have numerous positive effects for the entire national economy, especially considering that tourism is a strategic industry in Montenegro.