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Press Releases 2018 - January
23.01.2018 - Meeting of the CBCG Governor and the Head of the EBRD Residence Office in Montenegro
19.01.2018 - CBCG Council Session Held
19.01.2018 - The World Bank appreciated the progress of Montenegro
18.01.2018 - Competition for Granting the Annual Central Bank of Montenegro Award Announced
16.01.2018 - Governor Žugić at a meeting of the ambassadors of the EU member states
15.01.2018 - Germany and Montenegro bilateral economic cooperation to be strengthened
11.01.2018 - Meeting of the CBCG Governor and Addiko Bank AG Vienna Management
CENTRAL BANK OF MONTENEGRO
Podgorica, 23 January 2018
Meeting of the CBCG Governor and the Head of the EBRD Residence Office in Montenegro
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, met with Mr Jaap Sprey, Head of the European Bank for Reconstruction and Development (EBRD) Residence Office in Montenegro in Podgorica today.
The Governor Žugić presented to Mr Sprey the situation in the banking sector, with all business parameters being improved in the previous year, as well as the system itself concerning the higher level of stability and security. The Governor pointed out the CBCG will continue to give full support to the fiscal consolidation objectives and measures through its numerous activities during the current year, which have already come to life and give their first expected results, both in the field of harmonization of the regulatory framework with the best standards and practices of the European central banking, as well as through strengthening of their supervisory and institutional capacities.
The CBCG Governor stressed that, despite the observed vulnerabilities in the system that were treated and evidently reduced in the previous period, the Montenegrin economy is promising, and also expressed his expectations that the EBRD will support further strengthening of the competitiveness of the Montenegrin economy, i.e. contribute to enhancing the value of its numerous resources in the forthcoming period through its initiatives and projects.
Mr Spray congratulated the Governor and the CBCG on the contribution the Central Bank made by taking all the necessary measures under its competence in order to strengthen confidence in the overall financial system, which, as he said, will certainly contribute to the additional increase in the confidence of international financial institutions and foreign investors in Montenegro.
EBRD is the largest financial investor in Montenegro as it invested more than EUR 530 million in about 50 projects since 1991. The current portfolio for our country amounted to around EUR 350 million.
In Montenegro, the EBRD is focused on strengthening the competitiveness of the private sector including the tourism sector, further integration of the economy into the region through better roads and energy networks, and the promotion of the green economy through the development of sustainable energy and resource efficiency. The current strategy of EBRD for Montenegro also points out the importance of access to finance for businesses including SMEs and the EBRD is ready to expand its cooperation with the local banking sector through dedicated and targeted credit lines.
CENTRAL BANK OF MONTENEGRO
Podgorica, 19 January 2018
CBCG Council Session Held
The Council of the Central Bank of Montenegro held its session today, adopting the following materials: Governor`s Report on Central Bank of Montenegro Business Activities and Policy Implementation for November 2017, Macroeconomic Report of the Central Bank of Montenegro for the Third Quarter of 2017 and the Inflation Report Quarter III 2017.
Governor`s Report on Central Bank of Montenegro Business Activities and Policy Implementation for November 2017 noted that the activities of the Central Bank during 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 Macroeconomic Report of the CBCG for the Third Quarter of 2017, giving an overview of the most important developments characterized by the real, fiscal and financial sectors in the mentioned period. According to the available statistical data, the Montenegrin economy achieved significant growth in the first nine months of the previous year compared to 2016. The intensified activities in the construction of a number of infrastructure projects in construction and energy industry, as well as a significant increase in tourism indicators, contributed to GDP growth, which would amount to around 4% in 2017 according to the CBCG estimates.
Except for industrial output, which recorded a 6.7% decline in the first nine months of 2017 compared to the same period in 2016, growth was registered in the sectors of tourism, construction, forestry, air and road transport.
The banking sector was stable, liquid and solvent in the first three quarters of 2017. The quality of the assets of the banking sector recorded an improvement, with a significant decrease in the amount of non-performing loans, amounting to EUR 199.9 million at end-September 2017, which represented 7.4% of total loans. Compared to December 2016, non-performing loans decreased by 19.6%, this being 21.6% on the annual level. The Council members assessed that the implementation of amendments to the Law on Voluntary Financial Restructuring of Debts towards Financial Institutions contributed to the reduction of the level of non-performing loans. Lending and deposit interest rates continued to decline in the nine months of the previous year.
According to preliminary data, a decrease of 9.2% in the balance of payment current account deficit, was recorded from January to September 2017 when compared to the same period in 2016, which is the result of an increase in the surplus on the account of services, owing to revenues from tourism and transport, as well as positive developments in the primary and secondary income accounts due to the growth of remittances received from abroad.
Net inflows of foreign direct investments in the first three quarters of 2017 amounted to EUR 311.7 million, being an increase of 10.6% compared to the same period of 2016.
The number of employees in the first nine months of 2017 was 3.4% higher than in the same period of 2016, while the number of employees in September 2017 compared to December 2016 was 4.1% higher.
According to the expert assessment in the Inflation Report Quarter III 2017 the inflation rate in 2018 will range from 1.75% to 3.75%, with a central projection of 2.75%. The CBCG model projection shows that CPI inflation will vary from 1.3% to 3.6%, with a central tendency of 2.5%, depending on the month.
The Council also discussed other current issues within its mandate at today's session.
CENTRAL BANK OF MONTENEGRO
Podgorica, 19 January 2018
The World Bank appreciated the progress of Montenegro
The Governor of the Central Bank of Montenegro, Mr Radoje Žugić, PhD and his associates met today with the Head of the World Bank Office for Bosnia and Herzegovina and Montenegro, Mr Emmanuel Salinas.
Governor Žugić said that the banking system was improved in the previous year, which is confirmed by the fact that all parameters of the banking operations recorded growth. On the other hand, the share of non-performing loans (NPL) in total loans was reduced, as well as interest rate levels. The reduction of the NPL level to the historical minimum was significantly contributed by the implementation of amendments to the Law on Voluntary Financial Restructuring. Governor Žugić pointed out that the CBCG will consider the possibility of extending the validity of the Law, which is effective until May this year, if the need for this arises.
"As the strengthening of the supervisory function and the intensive work on further improvement of the regulatory framework continues, the CBCG will focus on additional support to lending activities of banks with the aim of making economic growth more dynamic”.
Mr Salinas appreciated the CBCG activities that contributed to improving the efficiency of the banking sector, therefore preserving financial stability. "Progress in the financial system area exceeded the expected level," Salinas said, adding that the World Bank recognized Montenegro's progress in many areas of the economy, but that there is a need to think about changing the growth model in order to boost the domestic capacities of the economy and improve its competitiveness. Innovation of the growth model would, according to Salinas, contribute to the creation of new jobs and improvement of the living standard. Mr Salinas stressed the World Bank's readiness to provide support to Montenegro in this course and announced more intensive presence and activities of this financial institution in Montenegro in the upcoming period.
CENTRAL BANK OF MONTENEGRO
Podgorica, 18 January 2018
Competition for Granting the Annual Central Bank of Montenegro Award Announced
The Central Bank of Montenegro announced today the competition for granting the 2018 Annual Award for the best diploma, master's and doctoral thesis in banking, monetary policy and theory.
Citizens of Montenegro who have defended their diploma, master's or doctoral thesis in one of the universities, faculties or high schools in Montenegro in the past calendar year, have the right to participate in the competition.
The cash amount of the Annual Award is EUR 2,000 for the best diploma thesis, EUR 3,000 for the best master's thesis and EUR 4,000 for the best doctoral thesis.
The deadline for submitting papers is 20 February 2018 and the award ceremony will be held on 11 April this year, on the Day of the Central Bank of Montenegro.
You can download the CBCG Annual Award competition wording on the following link.
The Central Bank of Montenegro Award was established in 2007 with the intention to make this institution an active participant in the process of raising awareness about the importance of developing and fostering scientific and professional thought in Montenegro, which is related to banking, monetary policy and theory.
CENTRAL BANK OF MONTENEGRO
Podgorica, 16 January 2018
Governor Žugić at a meeting of the ambassadors of the EU member states
The Governor of the Central Bank of Montenegro, Radoje Žugić, PhD, participated at the meeting of the ambassadors of the EU member states in Montenegro today at the invitation of the Head of the European Union Delegation to Montenegro, Ambassador Aivo Orav.
The Governor presented the most important macroeconomic figures to the ambassadors and informed them of the situation in the banking sector. "Last year, the banking sector was characterized by positive trends, therefore the business operations of the banks marked the growth of all key balance sheet items - assets, loans and receivables, deposits and capital," the Governor said. On the other hand, the past year was characterized by a further decline in the share of non-performing loans (NPL) in total loans as well as in interest rates. The Governor concluded that the high level of liquidity and solvency of the banking sector, alongside the mentioned tendencies, contributes to its smooth functioning, hence to the preservation and strengthening of financial stability.
Governor Žugić also mentioned the intensive activities that the CBCG conducts in order to strengthen the regulatory framework, aimed at harmonizing national legislation with the EU directives, introducing the best banking practice and strengthening supervisory function. "Improving the regulatory framework will contribute to preserving the sound banking system, but also to more efficient implementation of fiscal consolidation, which CBCG supports and finds necessary" the Governor said.
In the second part of the meeting, ambassadors' questions and discussions resumed on the topics that were covered by the Governor's presentation.
The Ambassador Orav showed appreciation to the Governor for his presentation and stressed that the Delegation of the European Union to Montenegro will continue to monitor the work and support the Central Bank of Montenegro.
CENTRAL BANK OF MONTENEGRO
Podgorica, 15 January 2018
Germany and Montenegro bilateral economic cooperation to be strengthened
Ambassador of Germany to Montenegro H.E. Mr Hans Ginter Matern visited the Central Bank of Montenegro (CBCG) today where he met with the Governor Mr Radoje Žugić, PhD.
Expressing his greetings to Ambassador Matern, the Governor Žugić reflected on his recent visit to Germany where he had a meeting with the President of the Deutsche Bundesbank, Mr Jens Weidmann. Governor Žugić emphasized that the Central Bank of Montenegro has a very good cooperation with the Deutsche Bundesbank and expressed his expectation that it will be further intensified by extending the bilateral cooperation programme.
The CBCG Governor presented to the German Ambassador the current economic situation in Montenegro. The Governor pointed out that, according to preliminary data for the first nine months of last year, the recorded growth was 4.5% and also expressed his belief that the trend will continue in the year ahead. When it came to the banking sector, the governor found it stable and highly profitable, stating that the previous year was characterized by continuous growth of assets, capital and deposits. On the other hand, the interest rates and the level of non-performing loans were on a continuous decline.
Ambassador Matern noted that the bilateral relations of the two countries are improving, which is also reflected in the successful cooperation of the central banks of the two countries. He emphasized he was ready to further strengthen cooperation with the CBCG and the Governor himself, therefore contributing to bilateral economic cooperation.
Governor Žugić showed his appreciation to Ambassador Matern for the continued support of Germany to Montenegro on the path to European integration.
CENTRAL BANK OF MONTENEGRO
Podgorica, 11 January 2018
Meeting of the CBCG Governor and Addiko Bank AG Vienna Management
Governor of the Central Bank of Montenegro, Mr Radoje Žugić met with the members of the Addiko Bank AG Vienna Management Board, Mr Martin Thomas and Mr Johannes Proksch, who is also Chairman of the Board of Directors of Addiko Bank AD Podgorica, and Mr Christopher Schoen, Chief Executive Officer of Addiko Bank AD Podgorica.
Representatives of Addiko Bank presented to Governor Žugić the business results of this financial institution recorded in the previous year, as well as the plans aimed at further strengthening of the market position and additional increase in the efficiency of operations. To that end, possibilities for improving the key competences between the Addiko Group and Addiko Bank in Montenegro were, among other things, discussed, regarding the development of the micro segment of the corporate sector and the retail market.
Governor Žugić expressed his satisfaction with the positive trends that characterized the business dealings of Addiko Bank in the previous year and pointed out that the CBCG is open to communication and cooperation in order to contribute to the further development of the Bank.
The present noted that Addiko Bank meets the prescribed parameters and mutually concluded that it should focus on further improvements in the forthcoming period, so that the banking sector, through its more active role and providing support to the corporate sector, will contribute to more dynamic economic growth.
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