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06/12/2017

The Governor of the Central Bank of Montenegro met with members of the International Monetary Fund (IMF) Technical Mission today, who is staying in Montenegro to provide support to the Ministry of Finance in drafting a public debt management strategy. The IMF Technical Mission was headed by Mr Thordur Jonasson.

Governor Žugić presented to the IMF representatives the latest indicators in the banking sector and the results of the CBCG's activities concerning financial sector vulnerability recovery, as well as a document titled Recommendations to the Government of Montenegro for 2018 Economic Policy. A special segment of the document relates to recommendations for fiscal policy, where the CBCG supported Government activities in the fiscal consolidation process. "The responsible approach the Government has shown for public spending was particularly encouraging, as well as its planning in line with budget revenues, which guarantees a downward trend in public debt in the medium term," said Governor Žugić.

The IMF representatives announced that Montenegro, recorded very good results in terms of improving the situation in public finances by decisive implementation of fiscal consolidation measures, and owing to the achieved economic growth, but special attention should be paid to public debt. To that end, the IMF Mission will work with the Ministry of Finance team to find ways for more efficient public debt management, in order to reduce the borrowing risks and improve the reputation of Montenegro in the international financial market.

Governor Žugić showed appreciation to the IMF representatives for their cooperation and expressed the CBCG willingness to provide support not only in the process of drafting the public debt strategy, but also in its implementation, through the engagement of its personnel capacities and within its mandate.