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20/06/2017

The Central Bank of Montenegro Governor, Mr Radoje Žugić, PhD, with his associates took part at the Roundtable “Voluntary financial restructuring of debts towards financial institutions” organized by the Chamber of Economy of Montenegro.

The Vice President of the Chamber, Mr Ivan Saveljić, opened the Roundtable discussions, pointing out that primary aim of today`s gathering was to present more closely to economy representatives the latest legal solutions, i.e. amendments to the Law on Voluntary Financial Restructuring of Debts towards Financial Institutions. Mr Saveljić mentioned these amendments were prepared with the aim to further improve the process of voluntary financial restructuring and in such way make contribution to decrease in a share of non-performing loans.

In his speech, the Governor Žugić presented to the real and banking sector representatives the basic elements of the Law, underlining it enables the additional incentives for both banks and clients, i.e. the debtors. The amendments to the Law, among other, prolong the implementing term to one year, while extending the implementation coverage to loans classified as “D” category. The Governor stressed these amendments were prepared prudently and carefully, taking into account a comparative experience, provided that financial stability as a whole or in individual banks should not be endangered in any segment.

The Governor Žugić also mentioned that the CBCG will continue with the enhanced supervision of banks in the upcoming period regarding their obligations arising from the Law, with the aim of reducing non-performing loans and creating environment for further credit activity growth while cutting down interest rates, which are still an expensive input for a real economy. This will enable the financial sector to provide even stronger support to real economy and the overall development of the country in the upcoming period.  
 
The Central Bank of Montenegro Vice-Governor for Banking Supervision, Ms Irena Radović, said this Law, with the all mentioned innovation and benefits it bears for banks and clients, simplifies the administrative procedures for voluntary financial restructuring and in such manner saves time and funds of the clients.

The real sector and bank representatives joined the discussion by exchanging views and opinions, posing specific questions on the Law implementation to the CBCG representatives.

In conclusion of the meeting today, the Governor Žugić said the CBCG has a pro-active approach in communication with all interested parties, therefore having a communication with banks on a daily basis. He invited the economy representatives, in case there are objections to certain banks’ practices, to address the CBCG, which will intermediate in resolving disputes under its competences.

At the close of the meeting, the Vice President Saveljić said the Chamber of Economy will contribute to connecting companies and banks through available mechanisms, with the purpose to precipitate the process of voluntary restructuring of debts.