Mihailovic: Montenegro is about to face problems at market of capital
- Mihailovic: Montenegro is about to face problems at market of capital
- Post By daniloc
- 13:58, 21 mart, 2002

Montenegrin firms are in worse situation then it is believed and it is to be confirmed by numerous problems at market of capital that are to appear in the forthcoming period, was estimated by professor of Economic faculty of Podgorica Bozo Mihailovic.
"All who considers that problems have been resolved by sale of vouchers points to citizens are wrong. When the firms privatized through the process of Mass voucher privatization get new owners we shall perceive the real situation, which is worse then expected", said Mihailovic at today#s Round table called "Market of capital" in Montenegro.
He said that the biggest problems of market of capital were lack of strong ownership motives in Montenegro as well as ignorance of most of the citizens on what they could do with their stocks.
Montenegrin firms have to restructure on the basis of market criteria in order to obtain necessary capital", said Mihailovic.
He announced that results of his analyze show that there was money in Montenegro that could be used for purchase of stocks.
Secretary of the Brokers# association that organized the round table, Aleksandar Radulovic said that judging on the first two weeks of trade with MVP stocks at the stock markets it could be concluded that citizens have minimal trust in privatization process.
"Favoring of certain circles resulted in situation that investments in computer equipment of some stock markets in Montenegro are higher then their so-far realized turnover", he claims.
Director of Nex Montenegro stock market Mladen Bojanic reacted to this statement of Radulovic saying that so far realized turnover of Nex Montenegro stock market was higher then the investments for equipment.
Radulovic said that inertness of Montenegrin banks at market of capital was annoying concerning the fact that they could realize additional incomes through this process.
He was of opinion that exceeding of those problems demanded change of Law on securities, limiting rights of Commission for securities, passing Law on privatization funds, enabling for state Funds to solely sell their stocks and inform public on it.
Radulovic proposed establishing of body that would mange privatization of remaining state capital and agency that would be promoter of economic potentials of Montenegro abroad. He said that it was necessary to present so far realized effects of privatization and make state prosecutor part of that process.
According to him only then the goal of management of a company would be higher price of stocks at stock market and stock index would be the only "magnet" for foreign capital necessary to firms.