Meetings with representatives of the IMF and the World Bank
10/10/2016
Delegation consisting of Milojica Dakić, Governor of Central Bank of Montenegro, Nikola Vukičević, Director General of the Budget Department of the Ministry of Finance and Nikola Fabris, Vice-governor for financial stability and payment system, participates at the annual meeting of the IMF and the World Bank. During the session, the delegation met with senior representatives of the IMF and the World Bank: Tao Zhang - Deputy Director of the IMF, Miriam Sherman - Assistant to the Vice-president of the World Bank for Europe and Central Asia, Ellen Goldstein - World Bank Director for Montenegro, Tomas Telma - IFC Director for Europe, the IMF Paul Thomsen Director for Europe, Martin Petri - the new Head of the IMF mission for Montenegro, Frank Heemskerk - Executive director of the Dutch Constituency, as well as with other senior officials
Economic situation in Montenegro was discussed at the meeting with Tao Zhang, with special emphasis on growth, capital investment and results of fiscal policy. The Governor of the Central Bank of Montenegro, Milojica Dakić, said that the banking system is stable, liquid and solvent. He also pointed out those key vulnerabilities in the previous period, high level of non-performing loans and high interest rates, significantly softened with a further mitigation trend.
At a meeting with Miriam Sherman, Assistant to the Vice-president of the World Bank for Europe and Central Asia, projects that should be implemented within the new framework of the World Bank Partnership with Montenegro for the period 2016-2020 were discussed. To this end, in order to maintain sound fiscal policy and full fiscal stability, modalities and conditions for obtaining a guarantee of the World Bank that would allow a favourable position of Montenegro in the international financial market were discussed. The possibilities for acceleration of planned projects for the tax administration reform, health care reform project as well as the already approved project of industrial waste and cleaning management were also discussed.
In conversation with the Director of the IFC for Europe, Tomas Telma, promotion of cooperation with IFC was welcomed, which is reflected in the recently approved loan to the MFI Alter Modus, which opens up possibilities for further support to the IFC in this part of the financial system. The IFC will seek parallel projects and investment opportunities particularly in the areas of sustainable tourism, infrastructure and agribusiness projects.
The CBCG delegation also met Martin Petri, the new Head of the IMF mission for Montenegro. Nikola Vukićević and Miloica Dakić informed him about the economic situation in Montenegro and it was agreed that Petri with his team will visit Montenegro in mid-November.
The CBCG delegation is especially thankful to the Government of the Netherlands, which has provided a significant donation from the IMF, which will help numerous technical assistance programs of importance for Montenegro. These are the following programs: implementation of ESA 2010 statistical standards whose implementation is one of the conditions for Montenegro's EU accession, improvement of public finance statistics, monetary and balance of payments statistics and the like. Also, professional services of the IMF will provide technical assistance program for the implementation of macro-prudential policy framework, which implementation will start in the second half of October.