Montenegro’s banks have demonstrated resilience and stability throughout the current year, according to Irena Radović, Governor of the Central Bank of Montenegro (CBCG). She highlighted the institution’s commitment to modernizing payment systems.
“Through the continuous improvement of the regulatory framework, the CBCG is dedicated to modernizing payment systems and aligning them with European standards,” Radović stated during a meeting with representatives from the International Monetary Fund (IMF) in Washington.
The Montenegrin delegation, led by Radović and Finance Minister Novica Vuković, engaged in multiple discussions with high-ranking IMF officials as part of the annual meetings of the IMF and World Bank. Key participants included IMF Deputy Managing Director Bo Li, European Department Director Alfred Kammer, and the IMF mission chief for Montenegro, Srikant Seshadri.
Radović expressed gratitude for the strong support from the IMF, particularly noting the implementation of an assessment of the Central Bank Transparency Code requested by the CBCG. This assessment aims to enhance transparency in governance and policy execution.
The discussions underscored that the CBCG, through its collaboration with the IMF, is taking significant steps to build public trust and increase accountability to citizens and stakeholders.
Vuković announced that the government, alongside international partners, is actively pursuing vital reforms and financing development projects. He emphasized that the focus moving forward will be on the long-term sustainability of public finances, aiming to strengthen macroeconomic stability, foster a favorable business environment, stimulate economic growth, and enhance revenue collection.
He outlined the Ministry of Finance’s plan to implement a new Medium-Term Debt Management Strategy by year’s end, developed with guidance and technical support from IMF experts. The strategy will prioritize reducing refinancing risks and harmonizing the maturity profile over the medium term.
Additionally, Vuković noted that the government has approved an increase in Montenegro’s quota at the IMF, raising it from 60.5 million Special Drawing Rights (SDRs) to 90.8 million SDRs.
He expressed appreciation for the IMF’s ongoing technical assistance in areas such as managing state-owned enterprises, macroeconomic policy, and fiscal risk analysis.
Radović also held discussions with the Governor of the National Bank of Belgium, Pierre Wunsch, focusing on economic challenges and opportunities for strengthening cooperation between the central banks of Montenegro and Belgium. They exchanged views on economic stability, current policies, and Montenegro’s integration into the European financial framework, particularly in relation to its accession to the SEPA area.
During their stay in Washington, the Montenegrin delegation also participated in the Annual Plenary Meeting, where IMF Managing Director Kristalina Georgieva emphasized the importance of building fiscal reserves, investing in economic growth, and tackling global challenges.
The IMF further cautioned about risks associated with geopolitical fragmentation and advocated for multilateral cooperation as a strategy to mitigate climate change costs and accelerate the transition to a green economy.
