IMF and IFC support Montenegro's financial consolidation, commend progress in supervising and regulating banking sector

Washington, the USA (14 April 2014) – Montenegrin Minister of Finance Radoje Žugić and Governor of the Central Bank Milojica Dakić met with senior representatives of the International Monetary Fund (IMF) and the International Financial Corporation (IFC) during the spring session of IMF and World Bank, which took place in Washington.

Minister Žugić and Governor Dakić informed the senior officials about current situation in the Montenegrin financial sector and the results achieved in fiscal consolidation, adding the budgetary deficit was lower in 2013 compared to 2012 and that public income increased by 10,2%. Montenegro’s banking sector has been significantly recapitalised, Governor Dakić added.

Director of the European Department at the International Monetary Fund (IMF) Reza Moghadam underlined that the IMF will continue providing support to the Government of Montenegro towards implementing the fiscal consolidation measures, stressing Montenegro has achieved progress in supervising and regulating its banking sector.

The fiscal policy will be focused on the public debt consolidation, budgetary deficit reduction and continuation of fight against grey economy, Minister Žugić stressed.

The meeting with senior IFC officials discussed possibilities for more effective cooperation and strengthening communication with Montenegro’s Ministry of Finance, particularly within the two key development projects, namely reforming the pension system and improving the system for collecting public revenue.