The CBCG Council adopts the sixth package of measures supporting the economy and citizens


The Council of the Central Bank of Montenegro (CBCG) adopted the Decision Amending the Decision on Interim Measures to Reduce Adverse Effects of the Communicable Disease Covid-19 Epidemic on the Financial System today.

This created the legal preconditions to implement the sixth package of measures, primarily aimed at micro, small and medium enterprises (SME), i.e. the part of the industry that has suffered the most significant consequences of the pandemic-caused crisis and at natural persons. The SME sector’s focus is justified because these companies employ over 75% of the total number of employees in Montenegro, with the same percentage participating in exports.

The Decision expands the coverage of loan beneficiaries entitled to a moratorium, approval and restructuring of loans with preferential regulatory treatment. These include the industries identified as the most affected by the pandemic’s consequences based on the previous analysis. Therefore, it expanded the list of priority industries within the meaning of this Decision by adding all activities from the last set of support measures of the Government of Montenegro. It also added some additional ones that the CBCG and commercial banks have identified. The new list of aggravated activities includes 111 activities and loans approved for the “tourist season preparation,” i.e. “accommodation and food services”. 

Providing the support to natural persons by additional facilitating their loans’ restructuring, the former Decision was supplemented by giving the possibility to extend the repayment period. Loan beneficiaries whose earnings have reduced by more than 10% due to the pandemic may be extended a repayment period by a maximum of five years. Clients may also use the moratorium lasting up to six months. It can be used when the five-year repayment period cannot preserve the unencumbered part of their earnings as defined by the Decision.

It also adopted an amendment allowing banks to agree on a longer-term when restructuring and classifying loans to which the Decision on Macroprudential Measures applies. It refers to banks’ loans to natural persons, including those when the loan is not secured by collateral under regulations under the regulation. The extension period may be up to five years providing the maturity does not exceed 10 years.

The covid-19 epidemic circumstances in the past year significantly affected the business volume and performance, deteriorating the historical picture of the borrowers’ financial condition. While assessing the borrowers’ creditworthiness and allocating asset items into the appropriate classification group, banks may exclude the borrower’s 2020 financial indicators (profitability, liquidity, capitalization, indebtedness, and cash flows) during the Decision’s validity.

To create conditions for clients to exercise the rights from this Decision as soon as possible, it will enter into force on its publication day in the “Official Gazette of Montenegro”.