According to model estimates, inflation in Montenegro should range from 0,4 percent to 3,3 percent in the next year, the Central Bank (CBCG) announced. At today's session, the CBCG Council adopted the Report on Price Movements for the third quarter of this year, in which it was stated that inflation, measured by consumer prices, was 1,1 percent in September compared to December last year. "Inflation during the next year will range from 0,4 percent to 3,3 percent, while the expert estimate is that inflation will range from one percent to three percent," specified the CBCG. The council assessed that risks are present in Montenegro in terms of the high level of illiquidity of the real sector, high interest rates and the slow recovery of the economies of the countries with which the country has the largest volume of foreign trade.
The Council adopted the Macroeconomic Report for the third quarter, in which it stated that significant economic growth was achieved in that period, which is largely the result of one-time factors - low base from last year and high growth rates of certain sectors that are not sustainable in the long term. "In nine months of this year, there was growth in industrial production, construction, forestry, retail trade, as well as most segments in the transport sector," the announcement states. The CBCG stated that the significant increase in exports and decrease in imports is encouraging, which contributed to the reduction of the current account deficit. According to their assessment, the situation in the banking system is stable, although the problem of a high level of bad assets is still present. "Risks are also present in other segments of the economy, especially in the high level of illiquidity of the real sector," said the CBCG. The Council also adopted the Financial Plan of the CBCG for the next year with a plan of investments, cash flows and public procurement. The plan foresees the realization of total revenues in the amount of EUR 9,95 million and the execution of expenditures in the amount of EUR 9,21 million, with the continuation of the implementation of internal economy measures and an active relationship in the management of international reserves. "The plan for the next year was prepared based on the projection the realization of income and the execution of expenditures in the following year, as well as the execution of the financial plan of the CBCG for nine months of this year, in which the reduction of operating costs compared to the planned was recorded," the statement added. The reduction of those costs, as they explained, is the result of implemented numerous and continuous savings measures - rationalization of administrative and operational business costs. The council also adopted a decision on amendments to the Decision on minimum standards for credit risk management in banks, which obligates banks to develop and adopt comprehensive strategies for dealing with non-performing loans for the period up to 2017. goals related to reducing the level of non-performing loans and to submit quarterly reports on their realization. The implementation of that decision encourages a new comprehensive approach to solving the problem of poor-quality loans in banks", said the CBCG.
"In addition to financial institutions, all other domestic and foreign creditors of the debtor, including foreign banks, can participate in the financial restructuring"
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