CBCG delegation continues meetings with the World Bank and IMF representatives

25/04/2022

Continuing the activities during the International Monetary Fund and the World Bank Spring Meetings, the CBCG delegation led by Governor Radoje Žugić participated in the IMF High-Level Conference on Regional Economic Perspectives. The delegation met with Mrs Ana Bjerde, World Bank Vice President for Europe and Central Asia, Mr Koen Davidse, Executive Director of the Dutch-Belgian Constituency and other World Bank and IMF officials.

At the meeting dedicated to regional economic perspectives, it was stated that the war in Ukraine had a significantly adverse impact on global and regional economic growth. It was noted that after the 6.5% growth in Europe and Central Asia, a decline of 4.1% is projected for this year, i.e. twice the contraction from the 2020 pandemic-caused recession. Recovery from the global pandemic crisis was slow even before the war due to rising interest rates and geopolitical tensions, reduced growth and trade, inflation pressures, the continuing COVID outbreak, and reduced macroeconomic support. The GDP growth forecast for 2023 for this region is 2.3%.

At the meeting with the World Bank’s Vice President Ana Bjerde, Governor Žugić pointed out that the CBCG had resolved all systemic weaknesses in the banking system before the global pandemic noting that Montenegro had entered a crisis with a strong banking system. He pointed out that the CBCG implemented ten packages of measures that have improved citizens’ social position, facilitated overcoming the economic recession to the economy and preserved the system’s stability. He also pointed out that these measures alleviated the recession in Montenegro, according to the IMF opinion. “The regulatory framework has significantly improved, and we are approaching full harmonisation with the EU acquis,” Žugić said. He added that Montenegro faces many global challenges affecting the domestic economy adversely. These include the war in Ukraine, the global pandemic consequences, the monetary abundance created by the leading central banks in curbing the crises, interrupted global supply chains, etc.

The World Bank Vice President pointed to a still high global uncertainty. She drew attention to the importance of reallocating tourist flows to Western European countries and expressed readiness to continue ongoing projects in Montenegro. Through its five active projects totalling about 141 million USD, the World Bank supports river flows and wastewater regulation, agriculture, administrative reform, and the energy sector in Montenegro.

At the meeting with Mr Koen Davidse, Director of the Dutch-Belgian Constitution at the World Bank, the delegation exchanged views on the economic situation in Montenegro and the Constituency member states. It was emphasised that Montenegro supported the regional World Bank and the European Commission project on modernising payment systems in the Western Balkans, expecting that the project would accelerate Montenegro’s integration into SEPA. Governor Žugić expressed his gratitude for the World Bank’s technical assistance in preparing tender documentation for the instant payment system and the QR code introduction project.