"Very successful cooperation": Damjanović and Žugić with high officials of the World Bank

The delegation of Montenegro, led by the Minister of Finance Aleksandar Damjanović and the Governor of the Central Bank Radoj Žugić, met in Washington with high officials of the World Bank - Executive Director Cohen Davidse and Vice President for Europe and Central Asia Antoanela Basani, and on that occasion it was assessed that the cooperation of that institution and Montenegro very successful.

The Department of Finance and the CBCG remind that, with the support of the World Bank, numerous projects are being implemented with the aim of improving Montenegrin infrastructure, that is, strengthening the economic and financial performance of the country.

Damjanović stressed, as stated in the joint statement, that the stability of public finances, the growth of tax revenues and the reduction of public debt create good foundations for the successful implementation of numerous projects started with the World Bank, including the DPL arrangement (Development Policy Loan) which should enable Montenegro support in the coming period.

"In this sense, it was jointly assessed that the preconditions of the arrangement, which are under the jurisdiction of the Ministry of Finance, have been mostly fulfilled, which is also expected from other institutions that are included in the arrangement," the announcement states.

Žugić, emphasizing that the CBCG has no obligations regarding the DPL arrangement, thanked the representatives of the World Bank for the support provided by that institution to the Central Bank, especially in the area of ​​modernization of payment transactions.

Further cooperation on the application of international standards and best practices in the field of banking supervision and rehabilitation was announced.

"The health and stability of the banking system have been confirmed through the assessments of important international institutions, as well as through the assessment of the quality of bank assets, which was carried out according to high international standards," said Žugić.

Financial stability, it is added, is the result of positive trends in the banking sector - adequate capitalization of banks, intensive lending activities aimed at economic growth, and continuous growth and improvement of asset quality, with a reduction in non-performing loans.

"The only negative trend refers to the slight increase in interest rates, which is a consequence of high inflation and the growth of Euribor," concluded Žugić.