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19/01/2018

The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD and his associates met today with the Head of the World Bank Office for Bosnia and Herzegovina and Montenegro, Mr Emmanuel Salinas.

Governor Žugić said that the banking system was improved in the previous year, which is confirmed by the fact that all parameters of the banking operations recorded growth. On the other hand, the share of non-performing loans (NPL) in total loans was reduced, as well as interest rate levels. The reduction of the NPL level to the historical minimum was significantly contributed by the implementation of amendments to the Law on Voluntary Financial Restructuring. Governor Žugić pointed out that the CBCG will consider the possibility of extending the validity of the Law, which is effective until May this year, if the need for this arises.

"As the strengthening of the supervisory function and the intensive work on further improvement of the regulatory framework continues, the CBCG will focus on additional support to lending activities of banks with the aim of making economic growth more dynamic”.

Mr Salinas appreciated the CBCG activities that contributed to improving the efficiency of the banking sector, therefore preserving financial stability. "Progress in the financial system area exceeded the expected level," Salinas said, adding that the World Bank recognized Montenegro's progress in many areas of the economy, but that there is a need to think about changing the growth model in order to boost the domestic capacities of the economy and improve its competitiveness. Innovation of the growth model would, according to Salinas, contribute to the creation of new jobs and improvement of the living standard. Mr Salinas stressed the World Bank's readiness to provide support to Montenegro in this course and announced more intensive presence and activities of this financial institution in Montenegro in the upcoming period.