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Žugić: We cut the contaminated part of banking system

Guverner Radoje Žugić

Atlas bank and IBM bank case didn’t affect Montenegrin banking market but it actually improved banking system of Montenegro, said the Governor of the Central Bank of Montenegro, Mr Radoje Žugić.

After these two bankruptcy cases, all banking parameters improved.

“We introduced temporary management at the beginning of December. All key banking parameters improved. Our liquidity is increasing, deposits are increasing too. I think we cut the contaminated part of our banking system and the result is healthier banking system”, explains Mr Žugić.

He is the supporter of stable cooperation and prevention and education.

“If we take prevention measures duly, we will avoid unpleasant situations”, says the governor.

Commenting on the current economic situation, he says that crisis is always lurking.

“Generally speaking, we must do our best in good times and create benefits in case we are faced with bad economic environment. We are a small country, global growth is slowing down, growth in German car industry is slowing down, the USA and China are at trade war, not to mention many other imbalances that reflect in smaller and open economies. Therefore, we must work on strengthening institutions and reinforcing the staff”, says Mr Žugić.

Stable currency is a big advantage, says Mr Žugić.

“Stable currency is a reflection of stable and strong economy. Euro brought order into the monetary authorities. I’d always choose euro for a currency. There are no political pressures and benefits are huge”, concludes Mr Žugić.

 

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