Press Releases 2016 - June
14.06.2016 - 88th CBCG Council session held
08.06.2016 - EVENT ANNOUNCEMENT: Ministers of Finance, Governors and Tax Administration Managers Summit Begins
05.06.2016 - CBCG Governor attends the IMF and the World Bank Dutch Constituency session in Kiev
01.06.2016 - CBCG Governor opened the ''Sectoral Financial Accounts'' Workshop
CENTRAL BANK OF MONTENEGRO
Podgorica, 14 June 2016
88th CBCG Council session held
Central Bank of Montenegro Council held its eighty-eight session today, presided by the Governor, Mr Milojica Dakić.
The Council adopted the Governor`s Report on Operations and Policy Pursuit of the Central Bank of Montenegro for April 2016, stating that Central Bank activities for this period were implemented in line with the scheduled duties, established by the 2016 Central Bank Working Programme.
The Council also analysed and assessed the impact of potential risks from macroeconomic environment and within financial system itself to financial stability position, finding the financial system as stable and level of systemic risk as moderate. Banks are stable, solvent and liquid. The Council noted that downtrend in both non-performing loans and lending/deposit interest rates on an annual level continued.
The Council adopted the 2015 Central Bank of Montenegro Annual Macroeconomic Report. The Report recognized that a number of positive trends occurred in 2015, those being: GDP growth, decrease in balance of payment current account deficit and increase in foreign direct investments. A certain concern is expressed with public debt and budgetary deficit development. It is also stated that the banking system was stable and liquid in 2015 but still encumbered with non-performing loans even though their level was significantly lowered. All prescribed sector safety indicators were above the law-established minimum. High level of liquid funds, growth in deposits and new loans, as well as capital increase with a number of banks additionally contributed to banking system safety. Banking sector recorded a negative financial result in 2015, amounting to 3.4 million euro, primarily due to implementation of the Law on conversion of loans in Swiss francs (CHF) to euro (EUR). Nine banks concluded their business year with profit while five had negative results (one mid-size and four small-size banks).
The Council also adopted 2015 Deposit Protection Fund Annual Report.
CENTRAL BANK OF MONTENEGRO
Podgorica, 08 June 2016
Ministers of Finance, Governors and Tax Administration Managers Summit Begins
Ministers of Finance, Governors and Tax Administration Managers Summit, organised by the weekly NIN will be held on 10 – 11 June 2016 in hotel Splendid in Bečići.
The topic of this year’s Summit will be “Regional Financial Stability in an Altered Global Environment”.
Ministers of finance panel “Public Finances Stabilisation without Sacrificing the Economic Growth” including the Minister of finance Mr Raško Konjević, as well as the regional tax administration managers panel “Tax Administration Reform and Fight Against Informal Economy” including Mr Miomir Mugoša, Montenegrin Tax Administration Manager will be held on Friday 10 June 2016 opening at 9.30 and 14.00.
Governors’ panel “Key Challenges in Monetary Policy and Supervision of Banks in 2016” will be held the next day, Saturday 11 June at 9.30 and introduced by Mr Milojica Dakić, Central Bank of Montenegro Governor. The regional central bank governors will speak on possible impacts new FED and ECB policy might have on monetary policy, interest rates, exchange rates of local currencies in the Western Balkans, world currency war, stress testing and systemic risks in the banking sector, supervision of banks, interest rates policy in 2016, future of the euro area, inflation, latest regional cooperation models as well as a number of other current monetary issues. Besides the CBCG Governor, the governors and representatives of the National Bank of Serbia, Bank of Albania, National Bank of Macedonia, Central Bank of Bosnia and Herzegovina, Central Bank of Kosovo, Croatian National Bank and Bank of Slovenia will speak at the Summit.
We invite the media to cover this event, having the dialogue and cooperation improvement as its objectives, not solely between central banks, but all regional financial institutions.
CENTRAL BANK OF MONTENEGRO
Podgorica, 05 June 2016
CBCG Governor attends the IMF and the World Bank Dutch Constituency session in Kiev
The CBCG Governor, Mr Milojica Dakić and the Vice-Governor Mr Nikola Fabris attended the Dutch constituency session of the IMF and the World Bank in Kiev, Ukraine. The main topic of the meeting was how to accelerate economic growth of the Constituency countries. Mr David Lipton, IMF First Deputy Director emphasized that the global economic growth is still disappointing. According to IMF estimation, a growth of 3.1% in 2015 is forecasted to be slightly higher in 2016 reaching 3.2%, while for the Dutch Constituency countries it would be 2.5%. He mentioned that deceleration of certain countries, such as Russia, China and Brazil was a concern, bringing up also the key factors to a faster development: political stability, adequate macroeconomic policies, quality institutions and new technology implementation.
The World Bank Vice-President for Europe and Central Asia, Mr Cyrill Muller mentioned the main global challenges: political stability, economic growth and climate changes. In order to meet these challenges in a proper way, it is necessary to adjust fiscal expenditures, carry out financial system reforms and provide price stability and exchange rates flexibility. It is also needed to improve infrastructure, educational systems as well as to create competitive economies in mid-term. Also, it is necessary to tangle with climate changes and the aging issue in the upcoming longer terms. Montenegrin delegation had meetings with a number of the IMF and the World Bank high representatives. Economic situation in Montenegro was discussed at the meeting with Mr Cyril Muller, World-Bank Vice-President for Europe and Central Asia. It is mutually agreed that the key factors lie in the fiscal sphere. Mr Muller emphasized the World Bank readiness to provide assistance to Montenegro both in the fiscal consolidation process and technical assistance in other areas. The Governor, Mr Milojica Dakić, invited Mr Cyril Muller, World-Bank Vice-President for Europe and Central Asia to visit Montenegro, which he accepted with pleasure.
Mr Menno Snel, IMF Executive Director for the Belgian-Dutch Constituency discussed the challenges for the upcoming period. Mr Snel introduced the future director of the Belgian-Dutch Constituency, Mr Anthonny de Lannoy to the Montenegrin delegation.
Possibilities for providing technical assistance to Montenegro by the Dutch Ministry of Finance were discussed with Ms Angelique Van Haasteren, Technical Assistance Director from the Ministry of Finance of the Netherlands. It was agreed that the Ministry of Finance representatives would visit Montenegro and continue the discussions on particular programmes.
CENTRAL BANK OF MONTENEGRO
Podgorica, 01 June 2016
CBCG Governor opened the ''Sectoral Financial Accounts'' Workshop
Central Bank of Montenegro and the Central Bank of the Republic of Turkey organised the workshop “Sectoral Financial Accounts” opening today in the town of Bar and lasting to 3 June 2016. The workshop was introduced by the Central Bank of Montenegro Governor, Mr Milojica Dakić.
The methodology of producing sectoral financial accounts represents particularly important statistical area, enabling the unique manner of presenting changes in financial assets and liabilities with all governmental sectors, therefore contributing to the efficient decision making in economic policy. Also, the unique methodology represents the manner of communication with other users from professional public and EU institutions.
Beside the representatives of the central banks from Montenegro and Turkey, representatives of the regional and EU central banks will be present at the workshop, alongside Ministry of Finance and Statistical Office representatives. Beside the aforementioned, European Central Bank (ECB) and Bank for International Settlement (BIS) representatives will also speak.