The World Bank Continues to Support Montenegro


03/11/2021

The Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, met with Christopher Sheldon, the new World Bank Country Manager for Bosnia and Herzegovina and Montenegro.

Governor Žugić presented current data concerning the macroeconomic situation and the banking sector’s situation. After the 2020 recession, the Montenegrin economy is expecting double-digit growth in the current year, primarily resulting from favourable trends in the service sector, especially tourism. The interlocutors agreed it was necessary to work on the Montenegrin economy’s diversification in the coming period to reduce its dependence on external factors.


“All key indicators of banks’ operations recorded positive trends,” pointed out Governor Žugić, adding that deposits and credit activity continued to grow in 2021. “We maintained financial stability in Montenegro during the COVID-19 pandemic crisis. It, inter alia, resulted from well-targeted temporary CBCG measures to mitigate the pandemic’s consequences on the economy and citizens. It was also the result of solid bank balance sheets before the pandemic outbreak,“ Žugić said.


The Governor thanked Mr Sheldon for the technical assistance this institution would provide to the CBCG concerning the National Retail Payments Strategy, standardising the national QR code, and creating a regulatory Fintech sandbox.


Mr Sheldon pointed out that the World Bank remains committed to improving cooperation with Montenegro. Future support will be defined through the new Strategic Framework of the World Bank’s partnership with Montenegro for the next five years, which is in preparation.