Montenegro can expect direct consequences from the war in Urkajina in the tourism sector, announced the governor of the Central Bank (CBCG), Radoje Žugić, and added that it is realistic to expect a drop in investments.
"As far as Montenegro is concerned, direct consequences can be expected in the tourism sector, in the form of a smaller number of tourists from the Russian and Ukrainian markets. It is also realistic to expect a drop in investments, especially considering the fact that Russia was the largest foreign investor in the previous year Montenegro", believes Žugić.
At the regional meeting of governors and bankers in Rovinj, he spoke as part of a panel dedicated to monetary policy issues, in which other governors from the countries of the region also participated.
As reported by the CBCG, Žugić identified the possible consequences of the Ukrainian crisis and sanctions against Russia on the Montenegrin economy.
He stated that the initial shock on the side of aggregate supply, and the resulting rise in the prices of oil and food products, caused negative chain reactions, which primarily materialized through the growth of inflation.
"The crisis caused by the war in Ukraine has shown that the dependence of the Montenegrin economy on imports and its insufficient diversification are sources of potential risks", said Žugić and added that the focus must be directed to the development of domestic production, primarily food, considering the resources that Montenegro has in that area.
The CBCG announced that the main topics of this year's meeting of governors and bankers, organized by Lider magazine and the Croatian National Bank, relate to challenges related to the current economic, financial and monetary situation in the region.
"Participants of the meeting discussed the measures and policies implemented in the countries of the region, which are aimed at minimizing the negative effects of rising inflation and the war in Ukraine," the press release added.
It was said at the meeting that the challenging times we live in call for even closer cooperation and exchange of views and opinions.
Expansive monetary policy and negative interest rates are a function of economic growth, but in conditions of high inflation, it is necessary to think about increasing interest rates, which would be implemented in phases and gradually, following economic activity and inflationary expectations.
On the sidelines of the meeting in Rovinj, a bilateral meeting between Žugić and the Governor of the Croatian National Bank, Boris Vujčić, was held.
They signed a Memorandum of Understanding, which aims to further improve the cooperation between the CBCG and the Croatian National Bank and promote the integrity, stability and efficiency of the subjects of supervision and the financial system.
"This document specifies the principles of the exchange of information between the two regulators, as well as the procedures for providing mutual assistance, in order to better fulfill the responsibilities entrusted to them. The focus is on the exchange of information and cooperation in the field of supervision over the subjects of supervision and their cross-border units," they concluded. from the CBCG.
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