Žugić: The banking sector is stable, liquid and well capitalized

The banking sector is stable, liquid, well capitalized and with positive trends when it comes to key balance positions, said the Governor of the Central Bank of Montenegro (CBCG), Radoje Žugić.

Žugić said this during a conversation with the European Bank for Reconstruction and Development (EBRD) team, which was led by the director of the Sector of Financial Institutions for the Western Balkans and Eastern Europe, Aleksandra Vukosavljević, and the head of the EBRD office in Montenegro, Remon Zakaria.

As reported by the CBCG, Žugić assessed that, through intensive credit activity, banks in Montenegro provide support to households and the real sector.

"Which confirms the growth of loans during the first five months of the current year, of over seven percent on an annual basis," stated Žugić.

He added that the previous period was very challenging for banks also from the aspect of applying the new banking regulation, harmonized with the best standards and practices of European central banking.

Vukosavljević emphasized the EBRD's readiness to support Montenegro in responding to numerous challenges resulting from the crisis caused by the pandemic and the war in Ukraine, as well as in achieving sustainable economic growth.

"This intention is reflected in the new EBRD Strategy for Montenegro for the period from last year to 2026, whose key priorities are improving the competitiveness of the economy, supporting projects in the field of green economy and improving the connectivity, that is, the accessibility of Montenegro," Vukosavljević pointed out. .

She added that the strategic framework of the EBRD for the period from last year to 2025 envisages the growth of green financing, the encouragement of inclusive economic development, digital transformation, as well as strengthening the readiness of the financial sector to respond to future challenges.

"The EBRD is ready to increase support to local financial institutions for credit lines aimed at women's businesses, young entrepreneurs and digitization," Vukosavljević said.

As stated in the announcement, the meeting concluded that the project to establish a credit guarantee fund, for which the EBRD provides technical support to the Government of Montenegro, will facilitate the economy's access to financing sources.