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World Bank (WB)
After joining the IMF, Montenegro became a full member of the World Bank with the quota, rights and obligations deriving from the membership in the group consisting of: the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA). The Articles of Agreement of members of the World Bank Group were signed in 2007 by Mr. Igor Lukšić, the Minister of Finance at the time, who was appointed the governor of Montenegro in the World Bank Group.
Pursuant to provisions of the Law on Membership of the Republic of Montenegro in the International Monetary Fund and Other International Financial Institutions the Ministry of Finance of Montenegro is the designated authority for cooperation with the World Bank Group and the European Bank for Reconstruction and Development.
The Ministry of Finance is the fiscal agent and it is authorized to perform all business and transactions envisaged by the Articles of Incorporation of these institutions, while the Central Bank performs the function of the depositary, i.e. it maintains deposit accounts of all the above mentioned financial organisations.
Country Economic Memorandum – Montenegro, December 2012
Montenegro: Preparing for Prosperity - Ensuring Sustainability, Connectivity, and Flexibility for Dynamic Growth
Podgorica, 27 May 2014
"Presentation of Podgorica Approach – Conditions for Success" Conference Held
International conference "Presentation of Podgorica Approach – Conditions for Success", organised by the Central Bank of Montenegro, was held in Podgorica on May 26. Application of the framework for resolving non-performing loans on a voluntary basis (Podgorica Approach) was discussed at the conference, which was created with the assistance of the World Bank's Vienna Financial Sector Advisory Centre (FinSAC).
The legal and regulatory framework for recovery and voluntary resolution of non-performing loans was presented during the conference, attended by representatives of the World Bank, CBM, Ministry of Finance, Centre for Mediation, as well as representatives of banks, international restructuring experts and investors. They also discussed direct and systemic support necessary for a successful implementation of the Podgorica Approach Framework.
As stated at the conference, under the Podgorica Approach Framework, direct responsibility for the implementation of restructuring lies with banks and their clients. It was also stressed that involvement of restructuring experts in the process of Framework's implementation is essential for ensuring a professional assessment of viability of debtors and their eligibility for restructuring defined by the Framework.
Moreover, activities of banks and their clients should be organized via a strong creditor coordination mechanism, so one of the key topics of the conference was how can banks get support from restructuring experts.
It was concluded that a successful implementation of the Podgorica Approach Framework will still depend on the financial support of new investors, but also on the developments in the real economy and the real estate market, given that a significant proportion of bad loans is related to this market. Success will be also shaped by the terms of a broader systemic framework, primarily those in the judicial system and in the institutions that are responsible for providing courts with the necessary information about debtors. All future improvements in these areas, as well as the adoption itself of the basic legal framework for the Podgorica Approach, depend on the legislators who also presented their standpoints on the afore-mentioned matters.
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