English

Great contribution of banks to mitigating the consequences of the pandemic

Foto: CBCG

The current situation on the banking market was discussed at today’s meeting of the Governor of the Central Bank of Montenegro (CBCG) Mr Radoje Žugić and his associates with the representatives of all commercial banks and the Association of Banks of Montenegro. Mr Žugić said that banks, owing to the improved business parameters, which were much better than in the period before the 2008 crisis, showed a high degree of resilience to the crisis caused by the coronavirus pandemic.

“It was concluded that the banking system is stable, liquid, solvent, and well-capitalized, even though the corona crisis resulted in some increase of bad loans and a considerable drop of the banking system profitability. What was emphasized is the contribution of the banking sector to the mitigation of the consequences of the COVID crisis for the citizens and economy,” the CBCG.

It was added that the banks have very effectively implemented all five sets of measures prepared by the CBCG during 2020 and, thus, significantly eased the position of the most affected part of the economy and population. This is best confirmed by the fact that 60 percent of the total gross loans approved to the tourism, agriculture, forestry, and fishery industries have been restructured or are in a one-year moratorium.

 

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