The Financial Stability Council of Montenegro adopted a Roadmap for the Financial Sector towards Sustainable Finance, aiming to align the country’s financial system with European and global sustainable development standards and ESG principles.
The meeting was chaired by the Governor of the Central Bank (CBCG) and Council President, Irena Radović, with attendance from members, including Finance Minister Novica Vuković, the President of the Securities and Exchange Commission, Željko Drinčić, and the President of the Insurance Supervision Agency, Marko Ivanović. Vojin Vlahović, Director of the Deposit Protection Fund, was also invited to attend.
The Roadmap provides a structured approach to integrating environmental, social, and governance (ESG) criteria into financial decision-making, enhancing economic resilience, and promoting social equality, contributing significantly to the society’s transition to sustainable development. Special emphasis is placed on strengthening institutional capacities, increasing inter-sector cooperation, and creating a supportive environment for managing climate and nature-related risks, alongside adopting ESG practices.
The implementation of the roadmap will be monitored by the Financial Stability Council, with active participation from the CBCG, the Securities and Exchange Commission, the Insurance Supervision Agency, the Ministry of Finance, banks, insurance companies, investment funds, and other financial institutions.
The Council also reviewed the Financial Stability Report for the fourth quarter, which indicates a 3% growth in Montenegro’s economy last year, driven by positive trends in retail, construction, and transportation sectors. However, the tourism sector saw a slight decline in arrivals and overnight stays.
The CBCG informed the Council that, with World Bank support, it has formed a working group to draft legal amendments to introduce electronic bills of exchange, a key reform aimed at modernizing the payment system and aligning with international standards.
Public finances were considered relatively stable last year, with a decrease in public debt relative to GDP. The banking sector remained stable, liquid, and solvent, with continued growth in deposits. The banking sector’s exposure to systemic risks was moderate at the end of the previous year, with cyclical risks present.
