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25/07/2016

Central Bank of Montenegro Council held its ninetieth session today, presided by the Governor, Mr Milojica Dakić.

The Council adopted the Governor`s Report on Operations and Policy Pursuit of the Central Bank of Montenegro for June 2016, stating that Central Bank activities for this period were implemented in line with the scheduled duties, established by the 2016 Central Bank Working Programme. 

The Council also analysed and assessed the impact of potential risks from macroeconomic environment and within financial system itself to financial stability position, finding the financial system as stable and level of systemic risk as moderate.

Banks are stable, solvent and liquid. They achieved a positive financial result end-June amounting to EUR 14.1 million. The Council noted that downtrend in both non-performing loans and lending/deposit interest rates continued. Non-performing loans made 11.8% of overall loans end-June, being lower for 24.4% when compared to the same period of the previous year. The average weighted effective interest rate on total loans (7.98%) fell by 1.03 percentage points and for the first time it is statistically shown, dropped to below 8% level. When it comes to new loans (6.72%), it fell by 2.13 percentage points in comparison to June 2015. Banks approved 121 million euro new loans in June which was 24.9% more than previous month, while they approved 573.5 million euro new loans for the first six months of the current year.

The CBCG Council passed the innovated draft of the Central Bank of Montenegro Law, after receiving comments from the European Commission.