CBCG representatives at the “Vienna Initiative” coordination in Split
The Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, and the Vice Governor, Nikola Fabris, are participating in the coordination of the European Bank “Vienna Initiative”, held on October 28 and 29 in Split.
It was stated at the conference that a significant global economic recovery was expected in 2021 and 2022. A growth rate of 6.1% is expected in the current year for Eastern European countries that are not the EU Member States. It was also pointed out that global inflation growth was most likely to be temporary. However, unlike developed European countries with low inflation expectations, they are rising in European economies in transition. It was suggested that the withdrawal of the fiscal incentive must not be abrupt not to jeopardise economic recovery. Also, it cannot last indefinitely not to threaten fiscal stability.
It was further stated that the pandemic did not adversely affect the NPL level in Eastern Europe. Together with Croatia, Poland, Northern Macedonia, Albania, Slovakia and Hungary, Montenegro has NPL coverage with regulatory reserves that are above average.
At the meeting with the European Bank for Reconstruction and Development (EBRD) representatives, Governor Žugić pointed out that the Montenegrin banking system was highly liquid and that the solvency ratio was almost twice the statutory minimum. He also stated that most of the banking indicators are at a record level. Governor Žugić suggested to the EBRD representatives to consider credit lines for microfinance. He thanked them for the support provided by this institution to the Deposit Protection Fund.
The “Vienna Initiative” is an international platform for dialogue and cooperation and brings together key institutions from the public and private sectors - international financial institutions, European institutions, central banks, regulatory and fiscal authorities, and the largest EU banking groups active in European emerging markets.