Bassani: Montenegro Emerging as a Regional Leader in Reform Remarkable Progress along the Negotiation Process
16/10/2025
Teams from Montenegro’s Ministry of Finance and Central Bank, led by Finance Minister Novica Vuković and Central Bank Governor Irena Radović, are attending the World Bank and IMF Annual Meetings in Washington.
In a meeting with Antonella Bassani, Vice President of the World Bank for Europe and Central Asia, they discussed the significant economic progress and the major steps the country has taken on its journey towards European integration.
Antonella Bassani highlighted that Montenegro is a leading reformer in the region, adding the impressive progress achieved in EU negotiations and praising the pace at which development projects are being implemented.
During a meeting with senior World Bank officials, Montenegro’s Finance Minister, Novica Vuković, stated that the country today boasts a stable and modern economy, demonstrating clear fiscal discipline and strong international confidence. With macro-economic growth exceeding 3% annually, record-low inflation and unemployment, and a significant reduction in public debt, Montenegro is rapidly strengthening its regional position. Foreign investments are increasing, key infrastructure projects are being delivered with the support of the EU and international financial institutions, and the energy sector is creating new opportunities.
He added that by opening new chapters in European integration and improving the country’s credit rating, Montenegro demonstrates that it is a reliable partner on the European path and an economic leader in the region. He also said that this progress proves that timely and visionary economic policies yield tangible results and a secure future for all citizens.
The meeting also provided an opportunity to discuss the TIPS Clone project, which is the central component of the programme “Modernisation of Montenegro’s Financial Infrastructure and Alignment with SEPA Standards (TARGET Instant Payment Settlement Clone Plus)”. Funded by the World Bank through a loan to be repaid by the Central Bank of Montenegro, the project is being implemented with technical expertise from the Banca d’Italia and coordination by the World Bank. Its aim is to ensure an efficient and Europe-wide interoperable payment system in Montenegro, available to Montenegrin businesses and citizens from July 2026.
Central Bank of Montenegro's Governor Irena Radović thanked Vice President Antonella Bassani for the World Bank’s strong and continuous support through the payment system modernisation project. This project enabled the Central Bank of Montenegro and all commercial banks in the country to integrate into the SEPA market on 7 October 2025, thereby integrating the entire financial sector into the European payment area—a foundation for full interoperability with European payment infrastructures.
Payment system modernisation has far-reaching effects on Montenegro’s economy: it enables instant payments 24/7, reduces transaction costs, increases liquidity for businesses, fosters conditions for innovative fintech solutions and cross-border digital services, and strengthens the Montenegrin economy’s competitiveness. The implementation of the TIPS Clone Plus project is estimated to generate economic benefits of around 160 million euros annually (approximately 2.3% of GDP) and contribute to reducing the income gap between Montenegro and the EU average by more than 11 percentage points over the next decade. Thanks to this project and cooperation with the World Bank and the Banca d’Italia, Montenegro is positioning itself as a regional leader in payment system modernisation and digital transformation of financial services.
Sava Laketić, Acting Director of the Tax Administration, noted that the completion of the RARP project by the end of this year provides a stable foundation for the continuation of reforms and modernisation of Montenegro’s tax system, which, in the medium term, has the potential to be regional-leading and competitive with European systems.
As part of the programme, the Montenegrin delegation held a meeting with Eugene Rhuggenaath, Executive Director of the World Bank, which reaffirmed strong support for further modernisation of Montenegro’s financial system through projects implemented by the Central Bank in partnership with the institution. Discussions highlighted the results achieved in the SEPA integration of the financial system, as well as collaboration with the World Bank Advisory Centre for the Financial Sector (FINSAC) in strengthening banking regulation and supervision, carried out in parallel with processes implemented in Eurosystem central banks. Director Rhuggenaath emphasised that Montenegro has become a “beacon for the region and small countries undertaking decisive reforms”, recognised as an example of successful implementation of good governance principles and a digital and green, EU-aligned financial system transition.
The delegation also participated in a meeting of the Dutch-Belgian Constituency of the World Bank and IMF, discussing the economic outlook for the region and global macroeconomic trends. Special attention was given to the challenges posed by rising uncertainty, slowing economic growth, and inflationary pressures, as well as the necessity for regional countries to continue structural reforms that strengthen resilience and sustainable growth.
Central Bank of Montenegro
Ministry of Finance of the Government of Montenegro