Press release: Prime Minister Zeljko Sturanovic meets IMF Head of Mission Graeme Justice

Prime Minister Zeljko Sturanovic met with Head of Mission of the International Monetary Fund Graeme Justice and IMF Resident Representative in Montenegro Harald Hirschhofer in Podgorica today. The meeting was attended by Finance Minister Igor Luksic.

The Prime Minister informed his guests of the strategic points of reference for the macroeconomic situation in Montenegro and the future course of action in that respect. He highlighted a very active support obtained from the International Monetary Fund, whose expert support was of extreme importance. The IMF representatives expressed their satisfaction with relations between Montenegro and that international financial situation, as well as with the recent trends in macroeconomic indicators in Montenegro. There was perceived to be a growth in the economy, accompanied by a high level of investment offering good prospects for future economic development.

Both sides highlighted the importance of strengthening the competitiveness of the local economy, i.e. its export component, which would help reduce the current account deficit. In that context, an emphasis was also placed on the necessity of new investment in the energy sector, in order to reduce Montenegros need for electricity imports and consequently reduce the deficit. With reference to the next medium term fiscal policy, it was agreed that additional efforts had to be made to finally define concepts concerning legislative amendments, with a view to increasing revenue collection in the sectors where such a thing was realistic. The IMF representatives pointed out the need for a more transparent monitoring of municipal budget execution, which would be addressed within the forthcoming amendment of regulations governing local government financing.