Žugić and Šeldon: Work on diversifying the economy

The Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić, met with the new head of the World Bank Office for Bosnia and Herzegovina and Montenegro, Kristofer Šeldon.

Žugić, as reported by the CBCG, presented current data regarding the macroeconomic situation, as well as the situation in the banking sector. "After the recession in 2020, growth of the Montenegrin economy is expected in the current year, expressed by a double-digit number, to which the positive trends in the service sector, especially in tourism, will contribute the most," stated the CBCG. The interlocutors, they added, agreed in the assessment that in the coming period we should work on diversifying the Montenegrin economy, in order to reduce its dependence on external factors.

"All key indicators of banks' operations are characterized by positive trends," Žugić pointed out and added that this year the trend of growth in deposits and credit activity continued. "Financial stability in Montenegro was preserved even during the crisis caused by the COVID-19 pandemic, which is, among other things, the result of well-targeted temporary measures created by the Central Bank in order to ease the consequences of the pandemic for the economy and citizens, but also the result of healthy balance sheets of banks before outbreak of the pandemic", announced Žugić.

The governor asked Sheldon about the technical assistance that institution will provide to the CBCG, which is related to the development of a strategy for small payments, the standardization of the national QR code and the creation of a regulatory Fintech sandbox.

Sheldon pointed out that the World Bank remains committed to improving cooperation with Montenegro, and that future support will be defined through the new Strategic Framework of the World Bank's partnership with Montenegro for the next five-year period, which is being prepared, the announcement concludes.