There is no reason to fear for savings in banks (€2.8bn at the end of March), the Central Bank of Montenegro (CBCG) said in its reply to the statement given by the leader of the Movement for Changes (PzP), Nebojsa Medojevic, who claims that it might happen that citizens lose their savings.
Medojevic said that at least two banks would address CBCG with a rehabilitation request, while the rehabilitation costs would be at the expense of citizens.
CBCG does not share his opinion.
“Deposit Protection Fund has sufficient funds allocated in case that potential risks are not avoided and there is no fear for deposited savings”, CBCG said.
Director of the Deposit Protection Fund Predrag Markovic confirmed that.
“All deposits of depositors in the banking system are protected up to €50,000. Out of the total number of depositors, 99.27% of natural persons and 97.13% legal entities are entirely protected by this amount. At the moment the fund has €87m. Taking into consideration the stand-by arrangement with the EBRD, the fund may interfere, if necessary, with €117m,” said Markovic.
The Central Bank said that non-performing loans kept falling and currently stood at 9.9%, whereas they used to reach 25.9%.
“We expect to further reduce this indicator and credit risk,” CBCG stated, adding that a positive trend was characteristic for the banking sector, as the dominant part of the financial system in Montenegro.
