Montenegro is a leading reformer in the region, said Antonella Bassani, Vice President of the World Bank (WB) for Europe and Central Asia, adding that the progress achieved in negotiations with the EU is impressive.
Bassani discussed with representatives of the Ministry of Finance and the Central Bank (CBCG) the economic progress and key steps Montenegro has taken on its European path. She met with Finance Minister Novica Vuković and CBCG Governor Irena Radović on the sidelines of the WB and International Monetary Fund (IMF) Annual Meetings in Washington.
During a meeting with senior World Bank officials, Vuković said that Montenegro today has a stable and modern economy, with a clear sign of fiscal discipline and strong international trust.
"With macroeconomic growth of over three percent per year, record low inflation and unemployment, and a significant decline in public debt, our country is rapidly strengthening its position in the region. Foreign investments are growing, key infrastructure projects are being implemented with the support of the EU and international financial institutions, while the energy sector brings new opportunities," Vuković said.
He added that by opening new chapters in European integration and improving its credit rating, Montenegro has shown that it is a reliable partner on the European path, and an economic leader in the region.
Vuković said that this is proof that timely and visionary economic policy brings concrete results and a secure future for citizens.
The Ministry of Finance announced that the meeting was also an opportunity to discuss the TIPS Clone project, which represents a central component of the program entitled Modernization of Montenegrin Financial Infrastructure and its Harmonization with SEPA Standards /TARGET Instant Payment Settlement Clone Plus/.
The project, financed by the World Bank and to be repaid through a loan by the Central Bank of Montenegro, aims to ensure efficient and European interoperable payment transactions in Montenegro for Montenegrin businesses and citizens from July next year. The project is being implemented with the technical expertise of the Central Bank of Italy and the coordination of the World Bank.
Radović thanked the World Bank for its support through the payment system modernization project, which enabled the Central Bank of Montenegro and commercial banks in Montenegro to integrate into the SEPA market on October 7th.
"In this way, the entire financial sector is integrated into the European payments area, which represents the foundation for full interoperability with European payment infrastructures," said Radović.
The payment system modernization project has far-reaching effects on the Montenegrin economy, as it enables instant payments 24/7, reduces transaction costs, increases the liquidity of the economy, creates conditions for the development of innovative fintech solutions and cross-border digital services, and strengthens the competitiveness of the Montenegrin economy.
It is estimated, as stated by the Ministry, that the implementation of the TIPS Clone Plus project will generate economic benefits of around EUR 160 million per year or 2,3 percent of gross domestic product (GDP), and contribute to reducing the income gap between Montenegro and the EU average by more than 11 percentage points in the next decade.
"Thanks to this project and cooperation with the World Bank and the Bank of Italy, Montenegro is positioning itself as a regional leader in the modernization of payment systems and the digital transformation of financial services," the statement said.
Acting Director of the Tax Administration, Sava Laketić, said that the completion of the RARP project by the end of the year provides a stable basis for the continuation of reforms and modernization of the tax system, which in the medium term can be leading in the region and competitive with European systems.
The Ministry announced that the Montenegrin delegation had a meeting with the Executive Director of the World Bank, Eugene Rhuggenaath, at which strong support for further modernization of the financial system was confirmed through projects that the Central Bank of Montenegro is implementing in partnership with this international institution.
"During the conversation, the results achieved within the framework of the financial system's accession to the SEPA area were highlighted, as well as cooperation with the World Bank's Financial Sector Advisory Center (FINSAC) in the area of strengthening banking regulation and supervision, which is taking place in parallel with the processes being implemented in the Eurosystem central banks," the statement said.
Rhuggenaath said that Montenegro has become a beacon for the region and small countries implementing decisive reforms, recognized as an example of successful implementation of the principles of good governance and digital and green, European-harmonized transition of the financial system.
The Montenegrin delegation also participated in the meeting of the Dutch-Belgian constituency of the World Bank and the IMF, where the economic prospects of the region and global macroeconomic developments were discussed.
The Ministry stated that special attention was paid to the challenges brought by growing uncertainty, slowing economic growth and inflationary pressures, as well as the necessity for countries in the region to continue with structural reforms that strengthen resilience and sustainable growth.
Bonus video:
