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20/03/2019

The Council of the Central Bank of Montenegro held its forty-second session, chaired by the Governor, Radoje Žugić.  

The main topic discussed at the session referred to the current situation in the Atlas Banka.  Director of the Banking Supervision Department, Dejan Vujačić introduced the Council members to the latest information regarding the situation and developments in this bank, as well as to the activities of the temporary administration. 

The Council concluded that the temporary administration has been managing the bank’s assets and liabilities in a responsible and committed manner, within the terms of the moratorium. 

The reduction in the level of covered deposits, from the amount of 103 million euros upon the appointment of temporary administration, down to 91 million euros at the end of January of this year, was deemed positive, given that it also entails the reduction in the potential liabilities of the Deposit Protection Fund. 

The Council will continue to monitor the activities of the temporary administration in the Atlas Banka, especially in light of the nearing expiry of the recapitalisation deadline. 

The key banking indicators were also analysed at today’s session. Interest rates continued trending down, with the weighted average effective lending interest rate amounting to 6.26% at the end of February 2019, specifically 4.80% for legal, and 7.75% for natural persons. Non-performing loans also remained on a downtrend, and, at the end of February this year they stood at 5.04% (excluding the Atlas Banka), while the loans over 90 days past due stood at 2.91%.