Vuković: Montenegro has successfully cushioned the impact of global economic developments on its small and open economy

The World Bank strongly supports reform processes in Montenegro, especially those aimed at promoting sustainable and inclusive economic growth, said the World Bank Vice President for Europe and Central Asia, Antonella Bassani.

Meetings with senior World Bank officials during the third day of participation in the annual meetings of the World Bank and the International Monetary Fund in Washington were held by Minister of Finance Novica Vuković and Governor of the Central Bank Irena Radović.

At meetings with Basani and the Executive Director of the World Bank, Eugene Rugenat, the implementation of the Partnership Framework for Montenegro for the period from last year to 2029 was discussed, which represents a joint strategic document of the World Bank and the Government of Montenegro and defines priority areas in which the World Bank will provide support to Montenegro in the aforementioned period.

"The importance of accelerating structural reforms, strengthening institutional capacities and continuing investments in infrastructure, energy transition and human capital development was emphasized, as the foundation for long-term and inclusive growth. The importance of further strengthening partnerships was emphasized, as well as the need for more efficient use of available development funds, in order to achieve measurable and sustainable economic results," the statement said.

Expressing gratitude for the support of an important international partner, Vuković announced that Montenegro has successfully cushioned the impact of global economic developments on its small and open economy, with stable and sustainable revenue growth resulting from stronger tax categories, more efficient collection and an expanding tax base.

He added that the results of responsible fiscal policy are, among other things, clearly reflected in the significant reduction in public debt from 105 percent of gross domestic product (GDP) in 2020 to 63,5 percent last year, with net public debt of 53,6 percent of GDP.

Radović also thanked Basana and Rugenat for the World Bank's strong and continued support for the process of modernizing payment systems in Montenegro.

"The World Bank's support represents an important pillar for the reform activities that the Central Bank of Montenegro is implementing in the area of ​​payment transactions. The results we are recording today confirm that Montenegro, thanks to the dedicated work of the Central Bank of Montenegro, cooperation with banks and the support of our relevant partners, has made an important step towards a modern, efficient and European interoperable payment system, to the benefit of citizens and the economy," said Radović.

She also informed the interlocutors about the status of the implementation of the TIPS Clone project, emphasizing that its implementation is proceeding according to plan and that July 20th is the planned launch date in Montenegro. It is a modern, European interoperable instant payment system, which will enable transactions to be executed in real time.

It was assessed that this new phase of payment system modernization, with the full implementation of European standards in this area, will further strengthen Montenegro's integration into the single European financial and economic market.