Governor Žugić Meets the World Bank Representatives

29/06/2023

The CBCG Governor Radoje Žugić and his associates met today with the World Bank team engaged in preparing the Report of Assessing the Impact of the World Bank’s Support to Montenegro within the Framework of Policy-Based Guarantees (PBG1 and PBG2) approved in 2018 and 2020. 

As a preparation for the aforementioned report, at today’s meeting, they discussed the CBCG activities towards approving earlier PBG arrangements, which were primarily related to strengthening the financial sector’s resilience.

Governor Žugić emphasised that the previous two PBGs contributed to the financial system’s stability and that “the best indicator of its current quality is the fact that the preparation of the new development loan (DPL) has no restrictions related to the financial system, i.e. the CBCG operations”.

Governor Žugić reminded that in the previous period, the CBCG improved the framework for treating non-performing loans, resulting in their reduction and amount of 5.49% at the end-May 2023.

“The banking sector’s stability is also confirmed by the high capital adequacy ratio, which currently stands at 18.94%, and by the record high level of deposits, as a proof of strong trust in the banking system,” announced Žugić.

The World Bank representatives praised the banking system’s stability and the quality of cooperation with the CBCG through sets of technical assistance in supervision and payment transactions.