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26/02/2016

The CBCG Council met today for the 83rd meeting chaired by the Governor Milojica Dakić.

The Council adopted the Governor’s Report for December 2015, which stated that the activities of the Central Bank in this period were carried out in line with the obligations planned under the Central Bank of Montenegro Work Programme for 2015. The Council analysed and assessed the impact of potential risks on the position of the financial stability and concluded that the financial system is stable, whereas the level of systemic risk is moderate.

The available statistics for 2015 indicate favourable annual level trends in majority of the economy sectors: industry, tourism, forestry, construction, and retail trade. Current account deficit narrowed in relation to the previous year due to an increase in the surplus on the services and primary income accounts.  High import dependency is still prominent in foreign visible trade leading to the foreign trade deficit widening. The FDI inflow was significant due to an increase in inflow arising from investment in domestic companies and banks and reduced withdrawal of foreign investments in relation to the previous year. The level and trend of public debt growth along with the real sector illiquidity remain the key macroeconomic weaknesses. The banking sector is stable, solvent and liquid as a result of the decline in non-performing and past due loans. Financial result on the system level is positive. Lending and deposit interest rates recorded annual decline. In December 2015, the annual inflation rate amounted to 1.4%.

The Council also passed a decision on licencing the “Azmont Banka” AD Podgorica.