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11/11/2016

Governor of the Central Bank of Montenegro, Radoje Žugić, with his associates, held a meeting today with the representatives of IMF mission to Montenegro, led by the new Head of Mission, Martin Petri.

The IMF mission in Montenegro will be conducted in Podgorica from 09 to 15 November on the occasion of regular changes at the head of the team that monitors Montenegro.

The Governor of the Central Bank of Montenegro informed the IMF mission with the situation, current affairs and prospects in the banking sector which is stable, liquid and solvent, as well as on the upcoming commitments in the area of further harmonization of legislation in the banking supervision with the EU acquis.

At the meeting it was noted that the level of interest rates and the level of non-performing assets represent the main challenges in the banking system, and that both of these challenges have been decreasing. Governor Žugić said that the CBCG considers possibilities for improving the regulatory framework to encourage the restructuring of non-performing assets so that the banks could actively contribute to the development of entrepreneurship.

Representatives of the mission were also informed about the proposal of the CBCG recommendations t to the Government of Montenegro in connection with the conduct of economic policy for 2017.

When considering the financial stability as a key objective of the Central Bank and economic prospects of Montenegro in the medium term, a special focus was on the challenges in the fiscal sector relating to the fiscal consolidation measures aimed at the rehabilitation of public finances, the level of deficit and public debt level.

The Governor of the Central Bank of Montenegro thanked for the successful cooperation with the former chief of the IMF mission to Montenegro, Alasdair Scott, who also attended the meeting.