According to the preliminary data released by the Ministry of Finance, source budget revenues were by 2,7% higher than projected, whereas budget expenditure recorded a 9,4% decline. Consequently, budget deficit amounted to €38,4 million at the end of September, it was said in today’s session of the Financial Stability Council.
Industrial production in decline, construction and tourism record positive trends
As representatives of the Central Bank said, the session discussed Information on Financial stability for the third quarter of 2019.
“It was stated that industrial production shrank 8,1% in the first nine months of 2019. Tourism sector has recorded positive trends, as well as construction sector”, said representatives of the Central Bank.
Successful emission of Eurobonds on the international market
One of the events that marked the third quarter of 2019 was Eurobonds emission on the international market.
“A 2,55% interest rate, the lowest interest rate ever since Montenegro offered its Eurobonds on the market, indicates a positive perception international investors have”.
Increase in total capital of the banks
As far as banking sector is concerned, total bank capital amounted to €594,2 million at the end of the third quarter of 2019, a 4% increase at quarterly level.
“The information on the financial stability stated that solvency of banks is at satisfactory level. Deposits have recorded a 7,8% increase”, pointed out representatives of the Central Bank.
Stability of the financial system is at higher level
On the basis of the impact analysis of all aforementioned factors on the overall economic stability, the Council concluded that financial system stability was slightly improved at the end of the third quarter of 2019.
Today’s session also discussed Information on the project of technical assistance for the development of financial education.
“The Information presented IMF’s the technical assistance project, in which Montenegro is taking part, and which is being carried out with financial support of the Dutch Ministry of Finance. Members of the Council endorsed preparation of the program, given the fact that financial stability and literacy are correlated.
