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26/10/2021

Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, and his team held a video meeting with the International Monetary Fund (IMF) team represented by Srikant Seshadri, IMF mission chief for Montenegro. This meeting started the regular annual consultations under Article IV of the IMF Articles of Agreement that the IMF conducts with all member states.

Presenting the key trends characterising Montenegro’s banking sector to IMF representatives, Governor Žugić stated that banks were stable and liquid. The solvency ratio at the system level was almost twice the statutory minimum, and deposits remain at the historical maximum.

The IMF representatives enquired about the CBCG’s plans concerning the duration of COVID-related support measuresthat were put in place by the Central Bank at the onset of and during the pandemic. The Governor stated that “the CBCG is monitoring the situation and trends prudently and thoroughly. Consequently, it will phase out measures gradually in a manner that will not jeopardise the ongoing economic recovery, or the stability of the banking system”.

The IMF mission will engage in conversations regarding the overall health of the economy with both government and private sector interlocutors. The mission will discuss the impact of the economic reforms that under consideration, on the near and medium-term economic outlook.