the holding of a referendum on independence.  The European Union (“EU”) on 12 June 2006 recognised the referendum result and announced that EU members would individually recognise Montenegro and establish diplomatic relations with it.  Serbia recognised Montenegro as an independent state on 15 June 2006. Montenegro became a member of the UN on 28 June 2006 and joined the European Bank for Reconstruction & Development on 6 September 2006, and the IMF and World Bank in January 2007. Montenegro’s political and consequential economic transformation over the last decade has been progressive and is expected to result in accession to the EU.  This accession will likely to materially result in increase investment of capital into Montenegro real estate and the luxury tourism and leisure market.

Montenegro currently enjoys rapid economic growth and is observed to be one of the more compelling markets for investors looking for above average returns.  The 2006-2007 year have seen a combination of a strong GDP growth of more than 6 per cent in 2006, coupled with low inflation and a significant inflow of foreign direct investment (more than US$ 1 billion over the two years combined).  Fiscal performance has also improved and the country’s level of external debt has been modest.