The Association of Banks of Montenegro (UBCG) supports the Central Bank (CBCG) in its efforts to find solutions for the recovery of Atlas and IBM Bank as soon as possible, so that the existing clients of both banks have as little inconvenience as possible due to the temporary blockage of money disposal. This was announced yesterday by the Board of Directors of UBCG, of which he is the president Esad Zaimović.
The board of directors, which consists of the directors of all banks in Montenegro, discussed the situation in the banking sector at its session on Thursday, after the introduction of temporary administrations in two member banks of UBCG.
"Analyzing the information in the period of several days after the introduction of temporary administrations, it was jointly concluded that these measures did not have a negative effect on the stability of the banking sector, since the first psychological blow passed without consequences, because there was no withdrawal of deposits from the banks. Our expectations are that it will be the same in the coming period," the announcement states.
Last Friday, the CBCG introduced a temporary administration in two owned banks Duško Knežević. The CBCG made decisions on the introduction of temporary administration, as it claims, based on the results of controls carried out in these banks, which showed that the capital at their disposal does not correspond to the level of risk of their operations. The interim administration introduced a moratorium on all payments except for salaries, pensions, social benefits and compensation for damages caused to life and health, while all other payments were stopped. The moratorium will be in effect for 45 days. After that, a report will be made that will show the state of these two banks.
Governor Radoje Žugić stated that he believes that the measures will give the banks a chance to recover, as well as that all clients will be paid money up to 50.000 euros after the moratorium expires, which is a guaranteed deposit. Žugić explained that 87.000 clients have guaranteed deposits of up to 50.000 euros, while 560 clients have exceeded that level.
Atlas Group assessed that the moratorium was not necessary and that it was causing damage to the entire banking sector.
Bonus video:
