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09/03/2021

The IMF began a virtual Staff Visit from March 8-12, for technical consultations with the Montenegrin authorities on recent economic developments, and the outlook. CBCG Governor, Mr Radoje Žugić, and his team held a video conference meeting with the IMF team, led by the Head of the IMF Mission to Montenegro, Mr Srikant Seshadri. 

Governor Žugić informed his interlocutors about the macroeconomic situation in Montenegro, focusing on the banking sector’s situation. He emphasized that the situation was stable for now and that banks have preserved their liquidity and solvency.

“Although the coronavirus pandemic caused adverse trends in almost all economic sectors, owing to its good condition before the crisis and the proactive CBCG acting, the banking system showed a high level of resilience, which contributed to maintaining the country’s stability,” the Governor pointed out. Continuing the conversation, the Governor presented to his interlocutors all six packages of measures implemented by the CBCG to mitigate the pandemic’s adverse consequences on the population and the economy.

Seshadri noted that the IMF will update its projections for Montenegro, based on the consultations during this Staff visit. For now, the IMF’s preliminary assessment of the economic contraction in 2020 is broadly similar to the CBCG estimates. Based on expectations of a better tourist season in 2021, the economy is expected to partially rebound from last year’s steep recession, and gradually recover to 2019 levels over the next 2-3 years.

The closing meeting of the CBCG Governor and the Head of the IMF Mission is scheduled for Friday, 12 March this year.