"During its first year as an independent country, Montenegro has proved to be a politically stable and economically viable state, which has the potential to grow rapidly," said Peter Reiniger, Business Group Director for the Western Balkans.

"The country is building up a favourable business climate and the EBRD's presence in Montenegro can play an important role in signalling to investors that Montenegro is an attractive investment destination," Mr Reiniger added.

The EBRD is the largest single investor in the region, and invests mainly in private enterprises while helping to build market economies and democracy in developing countries.

In a statement delivered to the media, EBRD announced it would help the government implement reforms and improve business conditions in the country.

The bank believes that Montenegro has achieved significant progress in the banking sector and it promises to support small and mid-size enterprises.

The EBRD emphasised that tourism and property are "at the heart of the national strategy for future economic growth", and announced it will increase operations in this sector with investors.

Before opening an office in Podgorica, EBRD invested 43.3 million euros in infrastructure credits and local banks in Montenegro.

The EBRD has named Marek Lorenc to be the chief of Podgorica's office.