IMF delegation presents Report on Montenegro to Prime Minister: Govt is managing economy well; fiscal consolidation measures are well balanced

Prime Minister Duško Marković hosted earlier today a delegation of the International Monetary Fund (IMF), which officially informed the Prime Minister that this international financial organisation, in accordance with Article IV of the Statute of the IMF, published yesterday the Report on Montenegro containing the estimates that the Government is managing the economy well and that fiscal consolidation measures are well balanced.

Informing the IMF delegation, led by Executive Director of the Belgium-Dutch Constituency Anthony De Lannoy, about economic performance for the first half of this year, the Prime Minister said that the results were excellent and that the collection of tax revenues, thanks to fiscal consolidation measures, by 8 September exceeded the amount of EUR one billion, which is almost 3% more than in the same period last year. The Prime Minister informed the representatives of the IMF that according to the Government's estimation in the first half of the year economic growth amounted to more than 4%, which is above official projections. PM Marković assessed that the works on large investment projects – primarily the motorway and other capital projects – contributed to this by engaging a large number of subcontractors. At the same time, this has provided new jobs – the Prime Minister said.

Prime Minister Marković stressed the full commitment of the Government to implementing fiscal consolidation measures in line with the Fiscal Strategy of Montenegro until 2020, with an even stronger focus on expenditure control. He also emphasised the importance of the Government's further work on increasing the efficiency of public administration as an important factor in improving the business environment necessary for further growth of investments and overall economic growth.

The Executive Director of the IMF welcomed the cooperation of this international organisation with the Government of Montenegro, informing the Prime Minister about the assessment from the yesterday published Report on Montenegro, which shows that the fiscal consolidation measures were well balanced, i.e. that the Government took into account the positive fiscal effect, but at the same time social aspect and allocation of social funds to those most in need.

The IMF also discussed the projection of the movement of public debt of Montenegro, especially the impact of the motorway project on public debt. It was concluded, Director De Lannoy said, that in small economies large infrastructure projects like this in the short term have a strong fiscal impact, and in the long run they have positive effects on the economy.

The Prime Minister thanked the IMF for the positive information from the Report, saying that this document is very important to Montenegro in terms of raising the country's credit rating and its further economic progress. PM Marković assessed that the positive IMF report, after joining NATO, is one of the most important factors for strengthening the international investment position of Montenegro. He also informed the IMF delegation that in the forthcoming period the Government will continue to implement infrastructure projects important for development, such as further construction of the motorway and efficient valorization of Montenegrin airports, but in a way that it does not affect the increase in public debt.

The Prime Minister thanked the IMF for cooperation and partnership with the Government of Montenegro, including technical assistance projects to the Ministry of Finance regarding public debt management and strengthening tax administration, and stressed that he expects the continuation of successful cooperation.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO