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Press Releases 2017 - November
30.11.2017 - Eighteenth CBCG Council Session Held
22.11.2017 - A Meeting with Representatives of the European Commission Directorate General for Economic and Financial Affairs Held
21.11.2017 - ANNOUNCEMENT: The international conference on protection of the Euro against counterfeiting opens in Podgorica tomorrow
17.11.2017 - Students from the Faculty of Business Economics visited CBCG
15.11.2017 - The final meeting with the IMF mission held
10.11.2017 - A meeting with the IMF mission held
10.11.2017 - The Central Bank of Montenegro Governor Meets the Societe Generale Group Delegation
09.11.2017 - Governor of the Central Bank of Montenegro takes part in an international conference in Tirana
07.11.2017 - The exhibition "Money as a Jewellery” opened in the Money Museum
06.11.2017 - The CBCG marked the Savings Week with numerous activities
03.11.2017 - Meeting of CBCG Governor and Management of Addiko Bank AG Vienna Held
03.11.2017 - "Savings and its Role and Importance in Society" Debate Held
03.11.2017 - ANNOUCEMENT: Opening of the exhibition "Money as a Jewellery"
02.11.2017 - Cooperation between supreme monetary institutions of Montenegro and Bulgaria to be improved
CENTRAL BANK OF MONTENEGRO
Podgorica, 30 November 2017
Eighteenth CBCG Council Session Held
The Council of the Central Bank of Montenegro held the eighteenth session today, chaired by the Governor Mr Radoje Žugić, PhD.
The Council discussed and adopted the Governor`s Report on Central Bank of Montenegro Business Activities and Policy Implementation for September and October 2017, which concluded that the activities of the Central Bank in this period were carried out in line with the commitments established by the Central Bank of Montenegro Work Programme for 2017.
The Council adopted the Central Bank of Montenegro Financial Plan for 2018, which was prepared on the basis of the implementation of the financial plan for the nine months of 2017 and the projections of expected revenues and expenditures in the next year. The plan provides the necessary conditions for the achievement of the objectives and the performance of the CBCG functions, and it was prepared in accordance with the principles of rational and responsible business activities. In this respect, operating costs were kept at the same level as in 2017. On the other hand, total revenues were planned in an amount that is 8% higher than the plan for 2017.
A set of decisions providing preconditions for the implementation of the International Financial Reporting Standard 9 (IFRS 9) dated 1 January 2018 which evaluate the financial assets and liabilities of banks in a new way have been adopted at today's Council meeting. In that sense, the decisions that regulate credit risk management in banks, bank capital adequacy, bank chart of accounts and the reporting of banks to the CBCG were changed.
In order to harmonize with the amendments to the CBCG Law, the Council also adopted a Decision on detailed conditions for granting loans to banks in case of their liquidity needs. The decision defines the conditions under which the CBCG can grant a liquidity loan to a commercial bank. Apart from the fact that the loan must be secured by the prescribed security and can be used solely for the settlement of the due obligations towards the depositors and other creditors, it is necessary to meet the conditions for the bank to be solvent, and in case of taking daily and overnight loan, it must have used 50% of allocated funds of the reserve requirement to maintain the daily liquidity.
On the day this Decision enters into force, Decision on detailed conditions for granting liquidity loans to banks (Official Gazette of Montenegro, No.15/11), as well as the Decision on granting last-resort financial assistance (Official Gazette of Montenegro, No.15/11), which meets the requirement set out in Negotiating Chapter 17 - Economic and monetary policy, in the part relating to the institutional independence of the central bank and the ban on monetary financing.
In order to comply with the regulations of the European Central Bank, the Council adopted the Decision on payment system reporting to the CBCG. This decision determines obligors, content, method and deadlines for submitting data on payment transactions to the CBCG, which this institution uses for statistical purposes, for monitoring payment transactions, including the use of payment instruments in Montenegro.
The Council also established Guidelines on implementation of international restrictive measures by banks and financial institutions and supervision of the implementation of these measures at today`s session. By establishing these guidelines, the recommendation of the FATF, the international institution in charge of establishing standards in the field of prevention of money laundering and financing of terrorism, is being implemented.
The Council discussed and adopted the Quarterly Report on Banks and MFI`s Operations. It was noted that the activities of the Central Bank during September and October were effected in accordance with the planned obligations established by the Central Bank's Work Program in 2017. The report on banks and MFI`s operations concluded that the business of banks during the third quarter of this year was characterized by the growth of all key balance sheet items - assets, loans and receivables, deposits and equity. Credit activity of banks was intensified, and the share of non-performing loans in total amounted to 7.40% at end-September, representing a decrease of 21.57%, on an annual basis. The solvency ratio was 16.78% at the aggregate level, which is over the regulatory minimum of 10%. High level of liquidity and solvency of the banking sector, along with the mentioned tendencies, contributes to its smooth functioning, thus to preservation and strengthening of financial stability. Banks reported a positive financial result in the amount of 30 million euros during the third quarter.
The Council also discussed other current issues from the domain of its competence at today's session.
CENTRAL BANK OF MONTENEGRO
Podgorica, 22 November 2017
A Meeting with Representatives of the European Commission Directorate General for Economic and Financial Affairs Held
On the occasion of the meeting of the Subcommittee on Economic and Financial Affairs and Statistics, representatives of the Directorate General for Economic and Financial Affairs of the European Commission (DG ECFIN) Mr Uwe Stamm and Mr Antonio Sanchez met with the representatives of the Central Bank of Montenegro.
The Recommendations to the Government of Montenegro for 2018 Economic Policy were discussed at the meeting. Representatives of the CBCG presented to the guests the priorities highlighted in this year's recommendations, as well as the importance of improving competitiveness and structural reforms in order to create a sustainable and stable economic growth. Also, other issues within the CBCG mandate were discussed, as well as the future prospects of the Montenegrin economy through the prism of fiscal consolidation and growth potential. A positive opinion was expressed about the announced measures and policies that are being implemented in Montenegro.
CENTRAL BANK OF MONTENEGRO
Podgorica, 21 November 2017
ANNOUNCEMENT: The international conference on protection of the Euro against counterfeiting opens in Podgorica tomorrow
An international conference titled "A Community Strategy to Protect the Euro in the Mediterranean Area" will be held from 22 to 24 November at the Hilton Hotel in Podgorica.
The conference, organized by the Ministry of Economy and Finance of the Republic of Italy and the European Commission, with the support of the Central Bank of Montenegro, will be attended by officials from the European Central Bank, the European Commission, Europol, representatives of central banks and governments in the Mediterranean region, as well as representatives of the Embassy of Italy to Montenegro.
The start of the conference is scheduled for 22 November at 9:30 hours, and will be opened by the CBCG Executive Director, Mr Radoica Luburić, PhD, Ambassador of Italy to Montenegro, H.E. Mr Vincenzo Del Monaco, representative of the Directorate General for Economic and Financial Affairs in the European Commission, Mr Marco Di Benedetto, representative of the Ministry of Economy and Finance of the Republic of Italy, Mr Roberto Ciciani and representative of the Italian Central Means of Payment Antifraud Office (UCAMP), Mr Antonio Adinolfi.
The main topics of the conference, which will be discussed among the participants for three days will include the latest European Commission measures aimed at protecting the Euro against counterfeiting, the role of central banks and other institutions in this process, and the safeguard mechanisms available to the Mediterranean countries in the fight against counterfeiting of the Euro.
The conference is organized as a part of the 2020 Pericles Programme, which aims to prevent counterfeiting of the Euro and related frauds through the organized fight, hence improving the competitiveness of the Union's economy and ensuring the sustainability of public finances in the Mediterranean region and beyond.
CENTRAL BANK OF MONTENEGRO
Podgorica, 17 November 2017
Students from the Faculty of Business Economics visited CBCG
A visit to the Central Bank of Montenegro by students of the Faculty of Business Economics in Bar was organised on the occasion of 17 November, International Students Day.
The students were given the opportunity to learn about the role and responsibilities of the CBCG and its functioning, as well as the history of money and central banking in Montenegro through the lecture given by Mrs Marijana Mitrović Mijatović, Director of Department for Financial Stability, Research and Statistics. Director Mitrović Mijatović presented and explained to students the basic concepts in the field of finance, financial system and monetary policy, as well as the importance of financial stability for the economy of a country.
The aim of such activities is to improve the financial literacy of young people, as well as to closer link the CBCG with students at Montenegrin universities in order to provide them with support in the development of knowledge that will be of importance to them in further education and employment.
CENTRAL BANK OF MONTENEGRO
Podgorica, 15 November 2017
The final meeting with the IMF mission held
Minister of Finance Mr Darko Radunović and Governor of the Central Bank of Montenegro Mr Radoje Žugić, PhD and the associates met today with the mission of the International Monetary Fund (IMF), headed by Mr Martin Petri, Head of IMF Mission to Montenegro, who is staying in our country for the purpose of collecting information needed to prepare a regular Mission under Article IV of the IMF Articles of Agreement.
The current economic situation in Montenegro was discussed at the meeting with particular reference to the fiscal and financial sector, as well as the projections for the forthcoming period and challenges in the area of further improvement of the overall economic situation in the country.
Head of Mission, Mr Petri appreciated the achieved economic growth of Montenegro this year, the current results of fiscal consolidation, as well as progress in the segment of the financial system. "The budget for the next year is in line with the Fiscal Strategy, and at the same time you have made great progress with regard to financial sector reforms," Mr Petri stressed, adding that the biggest challenge for Montenegro will be staying on this course. "It is necessary to continue the implementation of fiscal consolidation measures until the establishment of full sustainability and stability of public finances," the Head of the IMF Mission said.
Minister Radunović confirmed that it is necessary to persist with the implementation of fiscal consolidation measures, along with the parallel implementation of reforms that relate primarily to the pension and tax system and the financing of local self-government. The Minister showed appreciation to the IMF representatives on the previous, as well as the announced support of the IMF in order to successfully implement the reforms in these areas.
Governor Žugić announced that CBCG, through its activities, contributes to strengthening the stability of the financial and, therefore, the overall economic system. To this end, activities are continually being implemented in terms of introducing the best banking practices, strengthening supervisory capacities and improving the regulatory framework regulating the banking sector. "The legislative reform in this segment will ensure harmonization of domestic with EU regulations, but also strengthen the resilience of banks and the overall real sector to potential risks," said Governor Žugić.
The present agreed that there is an excellent cooperation between the IMF, the Ministry of Finance and the CBCG and arranged that the IMF Mission, in accordance with Article IV, will visit Montenegro in March next year again.
CENTRAL BANK OF MONTENEGRO
Podgorica, 10 November 2017
A meeting with the IMF mission held
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, and the associates met with the mission of the International Monetary Fund (IMF) today, headed by Mr Martin Petri, Head of IMF Mission to Montenegro, who is visiting our country in order to collect information needed for the preparation of regular missions under Article IV of the IMF Articles of Agreement.
Governor Žugić briefed the IMF representatives with the latest indicators of the banking sector, which confirm the continuous improvement of the financial system in Montenegro. While categories of assets, capital, loans and deposits recorded growth, the level of non-performing loans is continuously decreasing and currently stands at 7.4%. The level of non-performing loans was reduced to more than EUR 10 million through the intensification of activities related to the implementation of the amendments to the Law on Voluntary Financial Restructuring. In addition, the macroeconomic trends recorded this year, as well as the fiscal consolidation resultes, are positive and encouraging, said the Governor.
As for the CBCG activities, they are currently and predominantly focused on improving the regulatory framework governing the banking sector, which will ensure harmonization of domestic with the EU regulations, as well as strengthen the resilience of banks and the overall real sector to potential risks.
The IMF delegation is staying in Montenegro until 15 November 2017, when the scope of the topics for the upcoming Mission will be defined in accordance with Article IV.
CENTRAL BANK OF MONTENEGRO
Podgorica, 10 November 2017
The Central Bank of Montenegro Governor Meets the Societe Generale Group Delegation
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, met today with the Chief Executive Officer of the Societe Generale Group for Europe, Mr Gianluca Soma and representatives of the management of Societe Generale Bank Montenegro, Mr Miroslav Hiršl, Chief Executive Officer, and Mr Milorad Katnić, Chairman of the Board of Directors.
The mutual satisfaction with the operations of SGM Bank, which is one of the leading financial institutions in Montenegro was expressed at the meeting today. In addition to taking the first position in the domestic banking system, observed as per market share in total loans, the SGM Bank recorded positive trends with other business indicators.
Mr Soma showed appreciation to the CBCG for its support and partnership, and stressed that Montenegro recorded impressive results in economy, while the situation in the financial sector is improving from year to year, strengthening the financial and overall stability of the country.
Governor Žugić expressed his contentment with results achieved by the SGM, in particular with the fact that this bank has made a significant contribution to the real sector in Montenegro by implementing a sound banking practice.
It was also agreed that the future activities should be necessarily aimed at reducing the share of non-performing loans at the system level, to which the SGM Bank will give its full contribution, according to its representatives.
CENTRAL BANK OF MONTENEGRO
Podgorica, 09 November 2017
Governor of the Central Bank of Montenegro takes part in an international conference in Tirana
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, takes part in the international conference entitled "Banking developments and financial market infrastructure", which is being held today in Tirana, organized by the Bank of Albania and the University of Oxford.
The conference, opened by the President of Albania, Mr Meta, Governor of the Bank of Albania, Mr Sejko, Minister of Finance and Economy of Albania, Mr Ahmetaj and representative of the Oxford University, Mr Anastasakis, gathered the governors and other representatives of the central banks of the region, senior IMF and the World Bank officials, as well as a number of experts in the field of monetary and economic policy. Participants discussed domestic and international risks to the stability of the banking system, with a focus on the countries of South Eastern Europe, as well as the challenges these risks pose for central banks. Experiences on the manners to overcome these challenges were exchanged as well as the policies implemented by individual countries with the aim of strengthening financial stability. The conference also discussed macroeconomic trends in South East European countries and their relationship with the European Union.
Within the Governor's Panel, the Governor Žugić emphasized that the CBCG pays special attention to strengthening the regulatory framework governing banking operations with the aim of harmonizing Montenegrin legislation in this field with the relevant European directives. "The objectives that will be achieved through the reform of banking laws are primarily reflected in the further strengthening of stability and the development of the financial system. This creates the conditions for Montenegro to meet the requirements of the negotiation process, but also strengthen the resilience of banks, as well as the real sector, to the potential risks that Montenegro, as a small and open economy, is exposed to", emphasized Governor Žugić. As the presentation continued, he presented to participants of the conference the most important parameters that characterize the banking system in Montenegro as well as the most important CBCG activities related to financial education and inclusion. Positive trends in the financial sector were confirmed by international institutions, especially highlighting a strong reduction in the level of non-performing loans, a high level of liquidity in the banking sector, and a solvency that exceeds the legal minimum.
Today's conference concluded that, in order to adequately respond to the challenges the region is facing, coordination of monetary and fiscal policy is required, financial stability being a prerequisite for economic growth and development.
CENTRAL BANK OF MONTENEGRO
Podgorica, 07 November 2017
The exhibition "Money as a Jewellery” opened in the Money Museum
The exhibition titled "Money as a Jewellery" was opened today at the Central Bank of Montenegro Money Museum in Cetinje. The exhibition, which authors were Ms Milena Berkuljan, a documentary at the Money Museum and Mr Jovan Muhadinović, the Museum curator, was opened by the CBCG Governor Mr Radoje Žugić, PhD.
"The exhibition represents a blend of Montenegrin history, tradition, customs and belief on one hand, and money, as an indispensable guardian of history and the past, on the other hand," emphasized the Governor Žugić, highlighting that the CBCG initiates and carries out these and similar activities with the aim of promoting historical and cultural heritage of Montenegro, at the same time strengthening the financial literacy of the broadest public.
The opening of the exhibition, among others, was attended by members of the CBCG Council, numerous representatives of the diplomatic corps, as well as representatives of banks operating in Montenegro. The guests were addressed by the Capital of Cetinje mayor, Mr Aleksandar Bogdanović, and the Ambassador of the Republic of Turkey to Montenegro, Mr Serhat Galip.
The museum collection represents a rich collection of jewellery made from coins and the unique ethnographic-numismatic insight into a significant part of the Montenegrin past, which resulted in today's multiculturalism and multinationalism in Montenegro.
Visitors can see this exhibition, alongside permanent Museum exhibition titled "From Perper to the Euro" every business day from 8 to 16 hours.
CENTRAL BANK OF MONTENEGRO
Podgorica, 06 November 2017
The CBCG marked the Savings Week with numerous activities
The Central Bank of Montenegro marked the Savings Week with numerous activities organized over the past seven days.
The programme started on 31 October - the World Savings Day, by signing the Agreement on carrying out the "Savings Week" campaign between the CBCG and all 15 commercial banks. The mentioned campaign, organized this year for the fourteenth time in a row, implied the joint action of giving savings books to children born from 31 October through 6 November 2017 in Montenegro. Namely, children born in this period receive their first savings in the amount of 400 euros from the CBCG and the commercial bank where parents open a savings account for a new born child.
In addition to this, the CBCG has devised a number of other activities this year to mark the World Savings Day, which included a large number of children and young people. The CBCG representatives visited the students of two kindergartens, three primary schools and one high school from Podgorica during the past week, and on that occasion they explained the importance of money and savings to children and youth and introduced them to basic financial terms and categories. During these visits, children were able to hear lectures on financial terms that were appropriate for their age, and, in an interesting and creative way, learn more about responsible money management. Also, visits to the CBCG Money Museum in Cetinje were organized for the students of the two primary schools from Podgorica during the previous week. The Museum hosted students of the Faculty of Dramatic Arts and the Faculty of Montenegrin Language and Literature and, in cooperation with the Montenegrin Cinematheque, organized the screening of the film "Evil money".
The CBCG hosted students from four faculties (Faculty of Economics - University of Montenegro, Faculty of International Economics, Finance and Business - University of Donja Gorica, Faculty of Political Sciences - University of Montenegro and Faculty of Business Studies - University of Mediterranean) on Friday, 3 November and organized a debate on savings and its role in a society. Debate, in which a team from the Faculty of Economics won, was marked by a very interesting discussion among the participants and the confrontation of students' opinions and attitudes on a number of economic topics. Debates explained the economic and social aspects of savings through the argumentative discussion, assessing it as a useful social phenomenon that needs to be promoted and affirmed.
The CBCG endeavours to contribute to the strengthening of financial literacy and the spreading of financial knowledge and skills, primarily with children and young people through the initiation and implementation of such educational and socially responsible activities.
CENTRAL BANK OF MONTENEGRO
Podgorica, 03 November 2017
Meeting of CBCG Governor and Management of Addiko Bank AG Vienna Held
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, met today with the members of the Management Board at Addiko Bank AG Vienna, Mr Martin Thomas and Mr Johannes Proksch, the latter being also the chairman of the Management Board at Addiko Bank AD Podgorica.
The interlocutors exchanged views on the current situation and trends that characterize the banking sector in Montenegro.
In the introductory address, the guests presented to Governor Žugić the ongoing activities of Addiko Bank and the plans of this company, aimed at further strengthening of the market position and additional increase in the efficiency of operations.
Governor Žugić pointed out that the CBCG is open to continuous and intensive communication with all banks operating in our market, in order to implement sound banking practice and efficient and successful operations, which will contribute to the recognition of common interests, especially in the area of further strengthening of the banking system and financial stability preservation. The Governor also referred to certain shortcomings of internal procedures identified in this bank in the previous period, pointing out that it is necessary to work on minimizing or eliminating these risks in the operations of the bank.
The interlocutors concluded that the Addiko Bank met the prescribed parameters and mutually concluded that further improvements should be focused on in the upcoming period, so that the banking sector, through its more active role and providing support to the economy, will contribute to the putting into practice the economic policy of the Government of Montenegro, that is, making economic growth more dynamic.
CENTRAL BANK OF MONTENEGRO
Podgorica, 03 November 2017
"Savings and its Role and Importance in Society" Debate Held
As part of the programme of activities implemented by the Central Bank of Montenegro on the occasion of marking the World Savings Day, 31 October, a competition of debate clubs from four Montenegrin faculties was held today on the theme "Savings and its role and importance in society".
The Faculty of Economics and the Faculty of Political Sciences of the University of Montenegro, the Faculty of Business Studies at the University of the Mediterranean and the Faculty of International Economics, Finance and Business at the University of Donja Gorica responded to the previously sent CBCG invitation to higher education institutions to appoint representatives for participation in the debate.
The debate, held in the CBCG premises, was marked by a very interesting discussion of the participants and the confrontation of opinions and attitudes of students on a number of economic topics. Debaters, explained the economic and social aspects of savings in the argumentative discussion, assessing it as a useful social phenomenon that needs to be promoted and affirmed.
According to the expert commission's assessment, the debate club from the Faculty of Economics, represented by Ms Danijela Petović, Mr Aleksandar Pejović and Mr Nikola Radanović, won in today's competition.
The debate club from the Faculty of International Economics, Finance and Business, represented by Ms Aleksandra Gačević, Ms Natalija Drekalović and Ms Vanja Pejović were the second.
The Faculty of Political Sciences, represented by Mr Matija Miljanić, Mr Danilo Burzanović and Mr Slaven Minić won the third place, while the Faculty of Business Studies, represented by Mr Tomislav Turanjanin, Ms Olivera Đurović and Ms Sladjana Drobnjak finished fourth.
All students received letters of thanks for their participation in the debate, while the members of the team that won the first, second and third place were awarded symbolic awards.
Through the initiation and enactment of such educational and socially responsible activities, the CBCG endeavours to influence the improvement of financial literacy in the society, which is the prerequisite for rational and responsible financial management, as well as to contribute to the affirmation of knowledge, especially among young people.
CENTRAL BANK OF MONTENEGRO
Podgorica, 03 November 2017
ANNOUCEMENT: Opening of the exhibition "Money as a Jewellery"
The exhibition "Money as a Jewellery” will be opened at the Central Bank of Montenegro Money Museum in Cetinje, on Tuesday, 7 November at 13:00 hours.
The exhibition, with authors Ms Milena Berkuljan, the documentary in the Money Museum and Mr Jovan Muhadinović, the Museum curator, will be opened by the CBCG Governor, Mr Radoje Žugić, PhD.
The event is open to the public.
CENTRAL BANK OF MONTENEGRO
Podgorica, 02 November 2017
Cooperation between supreme monetary institutions of Montenegro and Bulgaria to be improved
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD, met today with the future Ambassador of Montenegro to Bulgaria, Ms Snežana Radović. The meeting was organized with the aim of preparing Ms Radović for taking up the duties of the Ambassador Extraordinary and Plenipotentiary of Montenegro to Bulgaria.
Governor Žugić presented to Ms Radović the cooperation of the CBCG and the National Bank of Bulgaria so far, finding it to be very good. "Of course, there is a scope for further intensification and improvement of cooperation, and the CBCG will be at the disposal to provide full contribution to the process," the Governor said. Discussing the financial system in Montenegro, the Governor pointed out that it is stable and characterized by positive trends.
Ms Radović underlined she will engage herself in finding new ways of cooperation between the two countries in the forthcoming term, with a special emphasis on economic cooperation.
The two agreed that it is desirable to work on exchanging the experiences of the two countries in the upcoming period, trying to ensure Bulgarian support to the process of European integration of Montenegro, which is particularly significant in the upcoming period, given the fact that this country takes over the presidency of the European Union as of 1 January 2018.
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