Meeting with the European Bank for Reconstruction and Development Representatives
14/06/2022
Today, the Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, and associates held a meeting with the team of the European Bank for Reconstruction and Development (EBRD), led by Aleksandra Vukosavljević, Director for Financial Institutions for Western Balkans and Eastern Europe, and Remon Zakaria, EBRD Head Office in Montenegro.
During the meeting, they discussed the current economic situation in the country, with special reference to the banking sector condition, the influence of external factors, primarily the war in Ukraine, and the possibility of expanding cooperation between the CBCG and the EBRD.
Governor Žugić assessed the banking sector as stable, liquid, well-capitalised and with positive trends concerning the key balance sheet positions.
“Through intensive lending activity, banks in Montenegro provide support to households and the real sector, as confirmed by over 7% loans growth during the first five months of this year," said Žugić. He added that the previous period was very challenging for banks in applying new banking regulations and harmonising with the best standards and practices of European central banking.
Ms Vukosavljević emphasised the readiness of the EBRD to support Montenegro in response to numerous challenges resulting from the crisis caused by the pandemic, and later the war in Ukraine and in achieving sustainable economic growth.
“This intention is reflected in the new EBRD Strategy for Montenegro 2021-2026, whose key priorities are improving the economy’s competitiveness, supporting projects in the green economy and improving Montenegro’s connectivity and accessibility”, Vukosavljević said. In addition, the EBRD's Strategic Framework 2021-2025 envisages growing green finance, fostering inclusive economic development, digital transformation, and strengthening the financial sector’s readiness to respond to future challenges. In this regard, the EBRD is ready to increase support to local financial institutions for credit lines aimed at women’s businesses, young entrepreneurs and digitalisation. “
The project of establishing a credit guarantee fund, for which the EBRD provides technical support to the Government of Montenegro, will facilitate the economy's access to sources of financing was the conclusion of today’s meeting.