Governor Žugić at the IMF and HNB Conference

04/06/2023

The CBCG Governor, Radoje Žugić, participated in the high-level conference organised by the Croatian National Bank (HNB) and the IMF in Dubrovnik on 2 and 3 June this year.

The conference titled “Policymaking in Choppy Waters: Fostering Resilience in Central Eastern and South-eastern Europe (CESEE)” gathered finance ministers and central bank governors of the countries of the region, senior officials of the IMF, the World Bank, the European Commission, the European Investment Bank and other international organisations, and respected academics from several European countries. One of the conference panellists was Kristalina Georgieva, Managing Director of the IMF.

During three panels, conference participants discussed the region’s key challenges, among which they singled out geopolitical fragmentation, supply shocks such as the current energy crisis, and accelerated climate change. Through an intensive discussion, the speakers analysed options for overcoming the mentioned challenges with the help of adequate fiscal, monetary and structural policies. They concluded that all countries should strengthen their resistance to shocks by implementing policies aimed at the timely identification of risks, supply channel diversification, increased international reserves and public finance strengthening.

Discussing the possible modalities of IMF support to member states in the current crisis conditions, Governor Žugić emphasised that Montenegro should not rule out a formal arrangement with the IMF and that further cooperation should aim at optimising the public sector and public debt management. Moreover, Žugić said, “salary growth should be in line with creating new value and productivity growth.”