English

A strategy for public debt management necessary

Montenegro needs to develop a strategy for public debt management, which will contribute to improving the structure of that financial indicator and further stabilising public finances, representatives of the Central Bank of Montenegro (CBCG) and the International Monetary Fund (IMF) agreed at today’s meeting.

“The Ministry of Finance will coordinate the process, with the IMF expert team’s full support, while the CBCG will implement activities within its scope of jurisdiction,” the statement said.

CBCG governor Radoje Zugic has met today with the IMF mission, led by Martin Petri.

The IMF mission is staying in Montenegro within regular consultations with the member states, in accordance with the Charter of the international institution.

“It has also been the final meeting with the IMF expert team, which deals with monetary and capital markets. The team has stayed in Montenegro for the past few days and provided technical support to the Ministry of Finance in the creating public debt management policy,” the statement said .

Zugic presented new indicators of the banking sector, confirming the continuous improvement of the Montenegro’s financial system. If the trend is continued, it will boost economic growth and development.

Zugic also said that in the forthcoming period CBCG would particularly focus on promoting a higher degree of standardisation, improving banking practices and adjusting domestic regulations to European ones.

Petri said that developments in Montenegro were encouraging, particularly in the area of defined and announced fiscal consolidation measures.

He noted that the banking sector was characterised by favourable parameters and supported announced CBCG’s activities aimed at further reducing the level of non-performing loans, introducing international financial report standards (IFRS 9) in the next year and strengthening the regulatory framework.

The IMF delegation is staying in Montenegro until 7 June, when a joint press conference of this institution, the Ministry of Finance and CBCG will be held.

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