CBCG Governor at Prestigious International Conference on Macroeconomic Policy
09/05/2025
The CBCG Governor, Irena Radović, participated in the traditional Reykjavik Economic Conference held on 8 and 9 May 2025, organised by the Central Bank of Iceland and the Centre for International Macroeconomics.
At the invitation of the Governor of the Central Bank of Iceland, Ásgeir Jónsson, Governor Radović spoke on the panel “Economic Consequences of Living Beyond Means – Debt and Deficit as Risk Factors”, together with the Governor of the Danmarks Nationalbanken, Signe Krogstrup, and Professor Gylfi Zoëga from the University of Iceland. Sigridur Benediktsdóttir from Columbia University moderated the panel.
The conference brought together prominent representatives of the academia and central banks to exchange views on current macroeconomic challenges, the impact of geopolitics on international trade and financial stability, and the importance of preserving fiscal sustainability in the context of rising global interest rates and geopolitical uncertainty.
In her presentation, Governor Radović highlighted that the Ministry of Finance of Montenegro has made significant progress in consolidating public finances in the post-pandemic period, reducing gross public debt from 105.34% of GDP in 2020 to an estimated amount of 61.32% in 2024, with continued public disciplinary efforts on transparent fiscal policy management. She emphasised that such fiscal results, combined with responsible regulatory and supervisory policies of the Central Bank, represent the key foundations for preserving financial stability and strengthening the resilience of the Montenegrin economic system in a challenging global environment.
She focused on the CBCG’s role as a pillar of institutional stability in euroisation, strengthening the banking sector’s resilience and supporting sustainable economic growth through responsible regulatory and supervisory practices.
“Central banks in small and highly open economies must be flexible and adaptable, but at the same time firm in preserving confidence in the financial system. Our focus at the CBCG is on preserving financial stability, improving the regulatory framework in line with European standards, modernising payment systems and strengthening institutional resilience in the face of external shocks,” Governor Radović emphasised.