Governor Žugić at the Regional Governors’ Meeting in Rovinj
The Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, is participating in the annual meeting of the Governors of the region, held in Rovinj, Croatia, from 10 to 11 June 2021.
The main topics of this year’s gathering relate to the challenges that monetary policymakers face in the post-pandemic environment.
Governor Žugić participated in the panel discussing the coronavirus pandemic's impact on the economies of the countries in the region, and their recovery. The panellists discussed anti-crisis measures to support the economy and the process of gradual fiscal and monetary policy normalisation. They pointed out that it was crucial to adjust the policies’ gradual normalisation pace to the economic recovery pace to avoid potential side effects.
During the panel, they stated that service activities-based economies with inherited sectoral vulnerabilities most felt the adverse pandemic’s effects. The panellists agreed that support measures must adequately target the most vulnerable industries. Moreover, the SME sector, traditionally vulnerable to all shocks due to its weak financial capacity, should not be neglected.
In his speech, Governor Žugić presented Montenegro’s experience repairing the pandemic’s economic consequences. He pointed out that, owing to carefully defined CBCG measures and good parameters of banks’ operations from the pre-crisis period, the banking system preserved its soundness and stability, which will play a major role in the long-term economic recovery. “The uncertainty caused by the pandemic continues, calling for a great caution,” said Governor Žugić, adding the necessity to prepare a plan for gradual and timely withdrawal of measures to minimize the risks of negative impact on the real sector and the banking system.
The Governor further pointed out that, along with the intensified started immunisation, we should continue to support the liquidity of micro, small and medium enterprises and dedicate ourselves to increasing production capacities, human capital development and technological progress. Moreover, “constant monitoring of fiscal and banking sector risks (especially credit risk) is essential for maintaining financial stability,” said Governor Žugić.
The annual meeting of the Governors of the central banks of the region, which brings together governors, representatives of banks and the financial sector, aims to enhance cooperation, exchange experiences and discuss current challenges related to key financial stability areas.