The Government of Montenegro has adopted a Restructuring Plan for the “Simo Milošević” Institute to ensure its long-term sustainability and alignment with modern economic and healthcare standards. An analysis revealed that all other market options have been exhausted, making state intervention necessary to preserve the institute’s function of general economic interest.
The plan is based on several key principles. The first is to preserve the Institute of Igalo as a crucial healthcare institution with a significant role in Montenegro’s health system and health tourism sector. The second focuses on financial rehabilitation and business stabilization through measures aimed at making the institute sustainable and stable.
The third principle aims to improve operational efficiency by optimizing organizational structure and digitizing business processes to boost productivity and reduce costs. The fourth involves active participation of minority shareholders in the restructuring and recapitalization process to further support sustainability.
The government emphasized the need for rational investments in infrastructure renewal without adding financial burdens to the institute. After reviewing six strategic restructuring options, the chosen model includes Phase II rehabilitation, proportional recapitalization, and divestment, with minority shareholders—especially major ones—participating in implementing the plan’s measures.
This approach reduces investment costs and the amount of state aid, as minority shareholders contribute proportionally to their ownership shares, lowering the financial obligations of both the state and the institute.
Additionally, the government adopted amendments to the Capital Market Law to align Montenegro’s legislation with EU standards, improve regulatory clarity, strengthen supervision, and enhance transparency and investor protection, thus fostering a more efficient and trustworthy capital market.
Finally, the government established the Agency for Spatial Planning of Montenegro. According to the new spatial planning policy, the preparation of spatial planning documents is a state and local government responsibility. The agency, a government-founded company, will prepare state-level plans, collect necessary data, engage the public, review local plans, and perform other legal duties. The budget allocation for establishing this agency is 500,000 euros.
