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15/11/2017

Minister of Finance Mr Darko Radunović and Governor of the Central Bank of Montenegro Mr Radoje Žugić, PhD and the associates met today with the mission of the International Monetary Fund (IMF), headed by Mr Martin Petri, Head of IMF Mission to Montenegro, who is staying in our country for the purpose of collecting information needed to prepare a regular Mission under Article IV of the IMF Articles of Agreement.

The current economic situation in Montenegro was discussed at the meeting with particular reference to the fiscal and financial sector, as well as the projections for the forthcoming period and challenges in the area of further improvement of the overall economic situation in the country.

Head of Mission, Mr Petri appreciated the achieved economic growth of Montenegro this year, the current results of fiscal consolidation, as well as progress in the segment of the financial system. "The budget for the next year is in line with the Fiscal Strategy, and at the same time you have made great progress with regard to financial sector reforms," Mr Petri stressed, adding that the biggest challenge for Montenegro will be staying on this course. "It is necessary to continue the implementation of fiscal consolidation measures until the establishment of full sustainability and stability of public finances," the Head of the IMF Mission said.

Minister Radunović confirmed that it is necessary to persist with the implementation of fiscal consolidation measures, along with the parallel implementation of reforms that relate primarily to the pension and tax system and the financing of local self-government. The Minister showed appreciation to the IMF representatives on the previous, as well as the announced support of the IMF in order to successfully implement the reforms in these areas.

Governor Žugić announced that CBCG, through its activities, contributes to strengthening the stability of the financial and, therefore, the overall economic system. To this end, activities are continually being implemented in terms of introducing the best banking practices, strengthening supervisory capacities and improving the regulatory framework regulating the banking sector. "The legislative reform in this segment will ensure harmonization of domestic with EU regulations, but also strengthen the resilience of banks and the overall real sector to potential risks," said Governor Žugić.

The present agreed that there is an excellent cooperation between the IMF, the Ministry of Finance and the CBCG and arranged that the IMF Mission, in accordance with Article IV, will visit Montenegro in March next year again.