Statement of Ms. Bojana Bošković, Independent Advisor for European Reporter

“This will ensure the greatest possible degree of harmonization with the European and international practices, taking into account the development level of the financial system of Montenegro. Bearing in mind the fact there aren’t other credit institutions other than banks, key provisions of the EU Directives regulating the system of deposits guarantees are envisaged through the provisions of proposed law. The proposed draft Law is establishing the system for the protection of deposits in which all banks are involved, and it is proposed that the deposit protection system includes banks subsidiaries headquartered outside Montenegro, increasing the level of guaranteed deposits and shortened the deadline for the payment of guaranteed deposits”. “The Principles of establishing a system of deposits guaranteeing are laid down in the EU Directive from 1994 (Directive 94/19/EC) and amendments to the Directive from March 2009 (Directive 2009/14/EC). With regard to the adoption of the Directive 94/19/EC, in addition to the usual reasons related to the creation of conditions for the harmonious development of activities of credit institutions and the promotion of free movement of capital, as key reason for its proposal and adoption is set forth the establishment of compulsory deposits protection as an essential element for the completion of the process of establishing the internal market and mandatory supplement of the system of supervision of credit institutions through solidarity assistance of a financial market participants in the event of failure of any of them”.