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Press Releases 2013 - July
09.07.2013 - 46th CBCG Council Meeting
08.07.2013 - Executive Director of the World Bank visits the CBCG
CENTRAL BANK OF MONTENEGRO
Podgorica, 09 July 2013
46th CBCG Council Meeting
The Governor Milojica Dakić chaired the forty-sixth meeting of the Council of the Central Bank of Montenegro that was held.
The Council adopted the Governor’s Report on Business Operations and Implementation of the Central Bank of Montenegro Policy for April and May 2013 indicating that activities of the Central Bank were carried out in accordance with the planned obligations, set by the Work Plan and Policy of the Central Bank for 2013. It was estimated that there is a relatively stable financial system and a moderate level of systemic risks.
The Council adopted the Macroeconomic Report of the Central Bank of Montenegro for Q1 2013. It was noted that during the observed period, there was a high economic growth, but that it is too early to speak about this type of annual growth projection, given the low base from Q1 2012. Negative trends in industrial production were stopped, while the volume of activities in construction and forestry increased. The report highlights the fact that there is still a high insolvency risk in the real economy, but what is encouraging is an increase in exports and a decline of imports. At the same time, there is an obvious decline of gross and net salaries, compared to the same period of the previous year. The key risks include a high public debt and its potential further growth. The banking system is stable and liquid but the share of non-performing loans remains high.
The Council also adopted the Inflation Report for Q1 2013. The Report noted that CPI inflation in Montenegro in March 2013, relative to December 2012, amounted to 0.5%. During this period, the prices from the category food and non-alcoholic beverages as well as transport recorded the highest growth. The annual inflation at end-Q1 amounted to 3.3%, and is significantly lower compared to the annual inflation in December 2012 when it amounted to 5.1%. According to the model estimate, it is expected that e inflation will range between 3.9% and 4.9% at end-2013, while according to the expert estimate, it will range from 3% to 5%. Compared to the previous projection as of December 2012, the inflation projection for this year increased because of VAT increase which will affect the increase of prices, as well as an increase in aggregate demand.
At today’s meeting, the Council adopted the 2012 Annual Report of the Deposit Protection Fund, together with the financial plan and financial statements for 2012.
CENTRAL BANK OF MONTENEGRO
Podgorica, 08 July 2013
Executive Director of the World Bank visits the CBCG
The Governor of the Central Bank of Montenegro, Mr. Milojica Dakić, and his associates, met Mr. Frank Heemskerk on his first official visit to Montenegro since his appointment as the Executive Director of the Dutch Constituency in the World Bank on 8 April 2013. In addition to Montenegro, Mr. Heemskerk represents the interests of 13 other countries in the World Bank.
The meeting focused on the current economic and financial situation in Montenegro, with a particular overview of the situation in the banking sector.
The Governor highlighted that the banks are liquid and solvent, that a number of banks has been recapitalised in the previous year and that there is an upward trend in deposits and loans. He also pointed out that the annual inflation rate in May this year amounted to 3% and that the estimated GDP growth in Q1 amounted to 4.3%. Mr. Heemskerk commended the CBCG efforts on preserving the stability of the banking system and emphasized the importance of the fact that a relatively low inflation rate has been preserved.
The Governor also expressed his gratitude for the support that Montenegro and the CBCG has been continuously receiving from the World Bank through various investment projects.
It was stated at the meeting that on 1 August Montenegro will take over the advisory position in the office of the Executive Director of the World Bank for the first time since becoming a member of the World Bank Group in 2007. The envisaged term of office for this advisory position is two years.
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