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Bankruptcy in Atlas Bank hasn’t undermined the banking system

Radoje Žugić

Bankruptcy in Atlas Bank didn’t jeopardize the banking system or the country’s rating, the governor of the Central Bank of Montenegro, CBCG, Radoje Zugic, told in an interview with Dnevne novine daily. He stressed that data confirmed deposits have been growing and that citizens’ trust in banks hasn’t decreased, as well as that he himself didn’t expect that bankruptcy procedures would lead to an increase in the interest rates. He didn’t openly comment on the accusations of businessman Dusko Knezevic, but rather pointed out that he was building his career entirely on his work, knowledge and full commitment.

On the question whether bankruptcy in Atlas Bank and Invest Bank Montenegro IBM affected the banking market and its stability, Mr Žugić noted that the banking system in Montenegro was stable which has been reflected in high capitalization, liquidity and profitable business.

As for the allegations that bankruptcy in Atlas Bank could have been introduced in 2015, Mr Žugić stressed that in 2015, he was the minister of finance and he was not authorized to make decisions on launching bankruptcy procedure in any bank.

He also claimed it would be difficult to foresee the duration of bankruptcy in Atlas Bank but that he expected the whole process to be implemented in an efficient way as soon as possible.

Despite the existing situation in the two banks, the banking sector in Montenegro is stable and liquid, according to him.

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