Meetings with the World Bank and the IMF Officials Continued

22/04/2018

On the second working day in Washington, the delegation of Montenegro comprised of the CBCG Governor, Radoje Žugić, Minister of Finance, Darko Radunović, State Secretary at the Ministry of Finance, Nina Vujošević and the CBCG Vice-Governor of for Financial Stability and Payment System, Nikola Fabris met with the Director of the IMF`s European Department, Poul Thomsen, Executive Director of the Belgium-Dutch Constituency in the IMF, Anthony De Lannoy, Head of the IMF Mission for Montenegro, Martin Petri and other senior officials of the IMF and the World Bank.

The shared view of the Montenegrin delegation and representatives of the IMF and the World Bank from the meetings held is that the positive trend of all economic, financial and fiscal parameters undoubtedly means strengthening the economic system, but that, with further work on system improvement, all potential risks must be carefully considered. 

Although the risks are of a significantly lower level, activities that gave good results in the past should continue, precisely in terms of addressing the key vulnerabilities of the real economy, as well as fiscal sustainability and financial stability.

The previous year was successful, and positive trends continued in this year as well. It was noted that fiscal stability significantly improved, among other things, through the surplus of current budget transactions, which will be further enhanced by relatively high growth rates of the economy in this and subsequent years. 

Assets, capital and deposits are significantly increasing in the financial sector, while the level of non-performing loans and interest rates recorded a downtrend. These positive trends also continued in the current year. Full implementation of standards, strengthening of the regulatory framework, not only in terms of harmonization with good EU practice, but also for the institutional strengthening of the Central Bank of Montenegro were valued among CBCG activities. 

The conclusion from the meetings is that Montenegro will achieve fiscal sustainability, financial and macroeconomic stability only in full interaction and synergy of these positive effects.