Ministry of Finance of Montenegro Bulletin
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R pub IC OF MONTe eGO THe M N sT Y OF F NANCe N 6 6 Minis try o f fi n a n c e o f Mo n t e n e g r o Bulletin XVi ap r i l - Ju n e 2009 www.ministarstvo-finansija.vlada.cg.yu AdministrAtion TAX ADMINISTRATION: www.poreskauprava.vlada.cg.yu CUSTOM ADMINISTRATTION: www.upravacarina.vlada.cg.yu DIRECTORATE FOR ANTI-CORRUPTION INITIATIVE: www.antikorup.vlada.cg.yu ADMINISTRATION FOR THE PREVENTION OF THEMONEY LONDERY: www.gom.cg.yu/aspn DIRECTORATE FOR REAL ESTATES: www.nekretnine.cg.yu PUBLIC PROCUREMENT DIRECTORATE: www.djn.vlada.cg.yu Bulletin of the Ministry of Finance of Montenegro / April - June 2009 Table of ConTenTs 4-5 INTRODUCTION - Mr. Igor Lukšić, PhD, Deputy Prime Minister and Finance Minister 6-12 IN THE FOCUS: IMF ARRANGEMENTS IN THE LIGHT OF GLOBAL ECONOMIC CRISES - mr Ana Krsmanović, Independent Advisor I 13-14 SECURITY INTEREST IN IMMOVABLE PROPERTY - MORTGAGE - Milanka Otović, Independent Advisor III 15-18 ACTIVITIES OF THE SPO UNIT IN PREpaRATION OF THE PROJECTS FOR NATIONAL MULTI-beneFICIARY IPA 2010 PROGRammE - Ms. Irma Nišić, Advisor - Ms. Branka Despotović, Advisor 19-24 REALIZATION OF THE CapiTAL BUDGET IN FIRST HALF OF 2009 DEpaRTMENT FOR PUBLIC INVESTMENT PLANNING - Ms. Ljiljana Crnčević, Independent Advisor I - Ms. Snežana Mugoša, Independent Advisor I 25-27 REPORT ON THE STATE DEBT OF MONTENEGRO AS OF 30 JUNE 2009 - Mr. Nemanja Pavličić, Asistant minister - Ms. Ana Banović, Advisor in the Division for Debt and Cash Management 28-29 FROM THE JOURNALIST PERSPECTIVE: MONTENEGRO AND GLOBAL ECONOMIC CRISES: VICIOUS CYCLE - Ms. Dragica Lalatović, TV Montena, Journalist 30-32 FIRST LEVEL CONTROL AS A TOOL FOR REDUCING IRREGULARITIES IN THE PROCESS OF USING EU FUNDS - Ms. Bojana Kaluđerović, Independent Advisor I, CFCU 33-34 ACCOUNTING AND AUDITING REFORM IN MONTENEGRO - Ms. Ana Krsmanović, Independent Advisor I - Ms. Aleksandra Popović, Independent Advisor II 35-39 ACTIVITIES OF THE DEPUTY PRIME MINISTER AND FINANCE MINISTER IN THE PERIOD FROM 1ST APRIL TO 30TH JUNE 2009 - Ms. Gordana Jovanović, Spokesperson - Ms. Ivona Mihajlović, Assistant to the Spokesperson 40-43 INFO/WEB OTHER ACTIVITIES IN THE PERIOD FROM 1ST APRIL TO 30TH JUNE 2009 - Ms. Gordana Jovanović, Spokesperson - Ms. Ivona Mihajlović, Assistant to the Spokesperson 44-46 IPA ADRIATIC CRoss-BORDER PROGRammE - Mr. Milorad Samardžić, Independent Advisor III, CFCU - Ms. Katarina Živković, Independent Advisor II, CFCU 47-50 DRAFT BUDGET FINAL ACCOUNT OF MONTENEGRO FOR 2008 - Ms. Stanimirka Mijović, Independent Advisor I 51-53 COMMENtarY: ImpaCT OF GLOBAL ECONOMIC CRISES TO LABOR MARKET - Ms. Ana Krsmanović, Independent Advisor - Ms. Bojana Bošković, Independent Advisor I 2 Bulletin of the Ministry of Finance of Montenegro / April - June 2009 54-55 PROCEDURES IN PRINTING AND ISSUING EXCISE TaX STampS SECTOR FOR TaX AND CUSTOMS SYSTEM - Ms. Ružica Bajčeta, Independent Advisor II - Mr. Jovica Petričević, Independent Advisor I 56-58 INTERNatiONAL COOperatiON: INTERNATIONAL COOPERATION OF THE FINANCE MINISTRY - INTERNATIONAL FINANCIAL INSTITUTIONS MEETINGS - Mr. Dragan Darmanović, International Cooperation Division Head Ministry of Finance of Montenegro - Mr. Marko Vukašević, Advisor in the International Cooperation Division 59-60 ELECTIONS FOR THE EUROPEAN PARliamENT Bulletin of the - Ana Ivanović, Independent Advisor Ministry of Finance - Nina Vukotić, Advisor April-June 2009 61-63 TRIM MNE FINAL CONFERENCE ROUND TABLE WITHIN THE COMPONENT: State Aid „STATE AID - NEW CHALLENGES OR OBSTACLES FOR MONTENEGRO NUMBER: AND ENTREPRENEURS” 16 - Ms. Sonja Bećović, Advisor of Minister - Ms. Šefika Kurtagić, Senior Advisor III PUBLISHED: 64 PAYMENT OF CONVERTED FOREIGN EXCHANGE SAVINGS BONDS quartely - Ms. Marina Popović, Independent Advisor I PUBLISHER: 65-67 ISSUING, WITHDRawiNG OR SUSPENSION OF ACCREDITATION FOR Ministry of Finance DECENTRALIZED MANAGEMENT OF THE EUROPEAN UNION FUNDS - Ms. Nataša Kovačević, Assistant Minister, CFCU FOR PUBLISHER: 68-69 RETURN OF PENSION AND DISABILITY INSURANCE CONTRIBUTIONS Igor Lukšić, Ph.D. - Ms. Tatjana Bošković, MSc. Independent Advisor in the Sector for Tax and Customs System EDITOR-IN-CHIEF: 70-72 FUEL CONSUMPTION ASSESSMENT BASED ON COLLECTED EXCISE AS THE Gordana Jovanović ECONOMIC ACTIVITY INDICATOR - Mr. Vladislav Karadžić, Independent Advisor I EDITORIAL BOARD: - Mr. Radovan Živković, Independent Advisor I Koviljka Mihailović 73-74 WORLD BANK PROJECT - REPARIS MA Milorad Katnić - Ms. Ana Krsmanović, Independent Advisor I Krsto Racković - Ms. Aleksandra Popović, Independent Advisor II MA Nikola Vukićević 75-79 LEASING MARKET IN MONTENEGRO - REPORT FOR FIRST QUARTER OF 2009 Dušan Perović AND COmpaRATIVE ANALYSIS OF LEASING MARKET TRENDS IN THE REGION Mila Barjaktarović - Bojana Bošković, Independent Advisor I - Jelena Vojinović, Independent Advisor III DESIGN: 80-87 MEDIUM - TERM EXPENDITURE FRamEWORK 2010-2012 Adil Tuzović - Ms. Tamara Gačević, Independent Advisor I - Ms. Slobodanka - Mila Popović, External Advisor TeHnical ASSISTANT: Ivona Mihajlović 88-89 HOW TO EXIT CRISES - POSSIBLE SCENARIOS AND REPERCUSSIONS TO MONTENEGRIN ECONOMY - Mr. Vladislav Karadžić, Independent Advisor I - Mr. Radovan Živković, Independent Advisor I CONTACT: PR Office of the 90-95 REALIZATION OF PUBLIC EXPENDITURE ON LOCAL SELF - GOVERNMENT LEVElJaNUARY - MARCH 2009 Ministry of Finance - Ms. Radović Gordana, Independent Advisor I in the Sector for Tax and TEL: Customs System +382 20 224 581 - Ms. Slobodanka Buric, Independent Advisor I, Budget Department FAX: 96-99 CONSOLIDATED PUBLIC CONSUMPTION IN MONTENEGRO +382 20 224 450 FOR THE PERIOD FROM I - VI 2009 E-MAIL: [email protected] - Mr. Stanko Jeknić, Independent Advisor I WEB: - Mr. Vladislav Karadžić, Independent Advisor I www.mf.gov.me - Mr. Radovan Živković, Independent Advisor I - Mr. Iva Vuković, Senior Advisor III ADDRESS: Stanka Dragojevića br 2, 100-102 REMOVING INTERNATIONAL DOUBLE TaXATION Podgorica - Mr. Mitar Bajčeta, Independent Advisor I 3 CON TACT: phone: +382 20 242-835 Deputy Prime Minister fax: +382 20 224-450 and Mi nis ter of FInance e-mail: [email protected] Igor Luk šić PhD web: www.mf.gov.me Introduction Dear readers, After the end of the first half of 2009, we may con- capital market, being a consequence of primarily EPCG clude that Montenegro is struggling with advers ities of recapitalization process, and the Decision on payment the huge financial and economic crises. Financial sys- of dividends in few business organizations, prior to all tem deviation, transferring negative consequences into Telekom. the real sector, have generated significant weakening of economic activity in our country. Logically, industrial In my opinion, economic policy measures intro- production is most affected, accounting for significant duced by the Government are amortizing negative eco- decline, partly but not sufficiently compensated by in- nomic trends. As it was expected, immediately after creased activities in the electricity generation sector. elections, the new Government continues with activi- On the other hand, it looks like that the sector of servic- ties that will counteract potential consequences of the es, especially tourism, will remain more or less stable, crises, both by engaging direct measures, as by imple- generating favorable impact on the overall situation. menting measures that in the long run should assist Generally, apart from unfavorable GDP trends, and the economic growth acceleration. In the light of the declined budget inflows, we may talk about stabiliza- above, the first step is the adjustments in budgetary tion in prices, employment, as well as due to significant consumption, both in the revenue and the expenditure decline in imports, strong adjustments in the current side, through certain corrections in excise tax. It should account deficit. Moreover, we can talk about banking be emphasized that in that context, the programme with sector stabilization, as well as on certain recovery in IMF still remains an open and realistic option which in 4 any case should be held active. The Budget rebalance, times of crises, is crucial to share the burden. Such ap- provides for rebalancing between tolerated/accepted proach, means the assistance to most vulnerable cat- level of the budget deficit that is lower than Maastricht egories. The essential approach should mean that is criteria and the level of debt which will remain on sus- necessary to liberalize the economic system to the full tainable percentage against GDP. At the same time, extend and that the social policy is completed through the budget deficit is lower than capital budget expens- budget consumption. Subsequently, it is necessary to es, which goes in favor of efforts used in maintaining implement programmes for optimizing large business the budget structure favorable. From January 2008, entities in order to have industrial production on sus- wages increased by 30% in all spending units, as well tainable grounds providing the basis for production as the assumption of liability of repayment of debts to expansion. pensioners, which resulted in less room for maneuver in the time of recession. Anyway, forthcoming challenges require full com- mitment, abandoning unrealistic requirements and However, in the long run, it is necessary to focus populism, as well as the provision of full contribution to on several plans. The continuation of improvements the social dialogue. in the business environment and creation of condi- tions for attracting foreign direct investments are cer- tainly priorities. This refers both