Budimir Raičković, President of the Board of Directors of Finance Plus and President of the Montenegrin Managers’ Association (AMM), held an online conference on 27 March 2020 together with other members on the topic “Economy in the Time of Coronavirus”.
Conference participants
- Vladimir Lučić — Executive Director of Mtel, member of AMM (telecommunications)
- Marijana Bojanić — Executive Director of TV Vijesti, member of AMM (media and marketing)
- Dragoljub Damljanović — Vice President for Energy and Services in SE Europe (Schneider), President of the Serbian Managers’ Association
- Dr Vinko Nikić — Chief Executive Officer of Lovćen banka, Vice President of AMM (banking and finance)
- Slavoljub Popadić — Executive Director of Rudnik uglja Pljevlja, President of the AMM Assembly (energy and mining)
- Radovan Radulović — Executive Director of Montenomaks C&L, Vice President of AMM (shipping, transport, hospitality)
Family and small businesses are the most vulnerable
AMM President Budimir Raičković said that family businesses, micro, small and medium-sized enterprises are the most vulnerable — because they do not have enough reserves to pay wages and other costs for several months without revenue.
“There is no sector that is not affected. We need more direct cooperation with banks and the Government. I expect that the measures taken so far are just the beginning of a joint action to save the economy.”
The state should help the tourism, hospitality, micro, small and medium-sized enterprises, media and transport sectors more. Banks should help vulnerable clients and strengthen lending activity after the epidemic.
Internet traffic has multiplied
Vladimir Lučić (Mtel) pointed out the importance of telecommunications in the crisis, since whole families spend longer periods at home — looking for a quality internet connection for entertainment, education and work.
“Mobile and internet traffic have multiplied. We are making great efforts to enable a quality connection. We are also helping from the other side — we donated 3D printers for making visors for medical staff, and participated in setting up the 1616 user support line.”
The moratorium will not make loans more expensive
Vinko Nikić (Lovćen banka) pointed out that in the crisis banks are the pillar of the economy.
“There have been many misinterpretations in the public about the moratorium. It is important that there will be no additional costs — obligations are only frozen and will continue after three months. Banks are helping and will continue to help the economy and citizens.”
Media on the front line, but their business is at risk
Marijana Kadić Bojanić (TV Vijesti) said that TV and portal Vijesti are recording a huge increase in ratings and readership.
“Vijesti is exactly what citizens in a situation like this consume the most. Nearly 200 employees are giving their best. Due to the nature of our work, many people cannot work from home — and after healthcare workers, they are the most exposed.”
She stressed that many companies are interrupting marketing campaigns, which drastically affects the revenues of the media and their sustainability.
Shipping and transport working under strain
Radovan Radulović (Montenomaks) said that the pandemic has caused a big problem in this sector.
“We are fighting both the pandemic and its effects on the economy. Employees are more exposed to the risk of infection — people delivering goods are constantly in contact with customers. The most important thing is to protect workers’ health.”
Most border crossings are closed, five are operating, air and rail traffic has been halted. After transporting goods from abroad, drivers must spend 14 days in quarantine.
It is important that the energy system remains stable
Slavoljub Popadić (Rudnik uglja Pljevlja) said that the energy sector is important in the crisis.
“A crisis committee has been formed and, despite difficult conditions, is managing to operate. The energy sector is making great efforts to ensure power supply, especially to health institutions. System stability is beyond doubt.”
Government measures should be expanded
Raičković noted that nobody has the best solution for this crisis.
“Many things are missing and it is very important for us to exchange opinions. The Government’s measures should be developed and expanded in depth. Montenegrin entrepreneurs have shown great humanity and solidarity through donations. The economy is giving its maximum.”
Digital business will grow
Lučić pointed out that his company has not left anyone without a job during the crisis — regardless of the type of contract.
“The world after Corona will never be the same again. Large companies will buy smaller ones, digitalisation will intensify — because only this way can the problems in the operating regime in such situations be overcome. The digital economy will see significant growth after the crisis.”
Save, but not too much
Popadić recommended that companies carry out cash flow analyses — to save, but not too much, so as not to jeopardise the business of partners and the local economy. He called for the formation of crisis committees for the affected sectors (tourism, transport, media) with the relevant ministries.
Tourism has its nose and mouth shut, yet it is asked to breathe
Radulović stressed that tourism and hospitality are suffering a tsunami.
“They close your mouth and nose, and say — breathe. How? Nobody knows when the coronavirus will stop. Without significant and urgent support from banks and the state, tourism cannot survive — and it accounts for 25% of GDP.”
After the epidemic it is important to release capital
Dragoljub Damljanović (Serbian Managers’ Association) said that there is no business that will not be affected.
“Governments should adopt a set of direct aid measures as soon as possible. Currently, significant capital is also frozen. I expect that, when the epidemic ends, we will have the largest release of capital and a major restart of business.”
Conclusion
The participants agreed that such a form of discussion is very useful and desirable — in order to reduce the impact of the epidemic on the Montenegrin economy through useful experiences and proposals.
Source: Montenegrin Managers’ Association
