PM Marković, Goldstein: Strategy is good; World Bank considers new support for development

Podgorica, Montenegro (8 June 2017) -- The Fiscal Strategy, which should be adopted at today's Cabinet session, is very credible framework of strengthening fiscal stability and the establishment of the declining trend in public debt, the World Bank's Country Director for the Western Balkans Ellen Goldstein said today while paying a farewell visit to Prime Minister Duško Marković.

She stressed the importance of yesterday's positive statement of the International Monetary Fund, since this is a sign for the World Bank that the Fiscal Strategy is very credible framework of strengthening fiscal stability and the establishment of the declining trend in public debt.

Goldstein added that it would, among other things, serve as a basis for consideration of support to Montenegro for development by the World Bank Boards of Directors in December 2017, announcing willingness to support Reform of tax administration, the implementation of which should begin by 2018.

Goldstein expressed the belief that the Strategy and other Government activities will contribute to strengthening the country's macroeconomic stability and credit rating.

Noting that the budget revenues are made in accordance with the plan, and that the expenses are lower than anticipated, Prime Minister Marković said that the measures of the new Strategy are deliberately taken, on the basis of analysis of the effects. He explained that the value of measures for the period up to 2020 is a EUR 117 million, and their greater impact on the slowdown of GDP growth is not expected. The Prime Minister pointed to the positive and encouraging results of the implementation of fiscal consolidation measures to be applied from January this year.

The meeting, which was attended by the new World Bank Director for Southeast Europe Linda Van Gelder, stressed the importance of Montenegro's membership in NATO. While congratulating the Prime Minister on Montenegro's entry into the Alliance, Goldstein concluded that this is important for the economic development of the country, and the Prime minister emphasised that the success of the country, along with the strengthening of macroeconomic stability and strong investment activity will contribute to the economic progress and improvement of living standard of Montenegrin citizens.

The Prime Minister thanked Goldstein for the personal contribution to the development of Montenegro. On this occasion, he thanked the World Bank, as well, for the current credit and grant support, and also for cooperation along with the IMF in consideration of appropriate and optimal measures of fiscal consolidation in the medium term.

The meeting also discussed the European path of Montenegro. In this context, Goldstein wished Montenegro to join the European Union soon, and the Prime Minister expressed the expectation for this to happen in the next five years.