The Governor of the Central Bank of Montenegro (CBCG), Irena Radović, stated that she expects the initiative to lower interest rates for citizens to continue beyond December 31. She will hold discussions with commercial banks regarding the extension of this initiative.
Since its launch on March 31, the CBCG’s initiative to reduce interest rates on loans for citizens has been adopted by all commercial banks in Montenegro, and it is set to run until the end of the year. Radović expressed optimism about the continuation of the initiative, stating that the significant reduction in interest rates, particularly for the most demanded loan products, has already been noticeable.
She further highlighted that her upcoming meeting with the banks will aim to continue this practice, with expectations that interest rates will decrease even further in the coming year. CBCG’s actions are anticipated to deliver positive results by April 1, 2024, marking the first year since the initiative’s implementation.
Radović also emphasized CBCG’s successful year, which included Montenegro’s integration into the Single Euro Payments Area (SEPA), modernization of the payment system, and important developments in the country’s financial stability and regulatory framework. She reported that the total assets of banks in Montenegro surpassed seven billion euros, with significant increases in capital, loans, and deposits, alongside a decrease in non-performing loans.
In addition, Radović shared developments in CBCG’s efforts to improve consumer awareness, such as the launch of a mobile app for comparing consumer credit offers and the enhancement of the Credit Register system. Furthermore, she mentioned the ongoing work on new legislation aimed at reducing fees for mortgage loans and regulating maximum allowed interest rates for consumer loans.
Looking ahead, Radović presented the CBCG’s Strategic Plan for 2024-2028, which focuses on strengthening Montenegro’s financial system, modernizing it, and aligning it with European standards. She also discussed the potential impact of upcoming bond issuances on the domestic market and the CBCG’s role in overseeing the new Development Bank of Montenegro.
Finally, Radović noted that CBCG would contribute approximately 5.5 million euros to the national budget this year, reflecting its financial independence and operational success.
