CBCG Governor meets the Association of Banks to discuss measures preventing coronavirus impacts
16/03/2020
The Governor of the Central Bank of Montenegro (CBCG), Mr. Radoje Žugić and his associates, met today with the representatives of all commercial banks in Montenegro and the representatives of the Association of Montenegrin Banks led by its President, Mr. Mladen Rabrenovic.
The CBCG has initiated today’s meeting to discuss the current situation regarding the increased risk of the coronavirus (COVID-19) emergence in Montenegro and to define activities aimed at preserving financial stability.
Banks reported that they had taken all preventive measures recommended by the Government of Montenegro and the Institute for Public Health. These measures are aimed first to protect the health of employees and the entire Montenegrin population, and then to maintain business continuity, i.e. to ensure regular and smooth functioning of banks.
Although this delicate situation presents a significant challenge for every business entity, the banks have ensured no rest or any impediment in providing any service to citizens and the economy by acting proactively and responsibly. This confidence additionally increased by the fact that this situation occurred at a time when the banking sector in Montenegro has high-quality indicators showing its adequate capitalisation and strong liquidity. The attendees also stated that all banks provided mechanisms for the regular supply of ATMs with cash and suspended fees for withdrawing money from ATMs and those for using electronic payments.
Guided by the social responsibility principles and recognising that the current situation could have adverse effects on the economy, they also discussed ways how the banking sector could contribute to overcome potential problems in the economy more easily. Therefore, they concluded that banks continue lending, while the CBCG would provide a legal basis that would relax banks to restructure loans with default justified and/or caused by the consequences of a new situation.
Governor Žugić emphasised that banks could count on the full support of the CBCG, announcing intensified communication with banks in the coming period.