The value of NPLs declined further and toxic loans accounted for 7.8% of gross loans at end-August, down from 8.2% of gross loans at end-July, Central Bank of Montenegro (CBCG) Governor Radoje Zugic said on Wednesday. He attributed that decline to the realization of restructuring initiatives and assured that the NPL ratio will decline further in the coming months. He met with the World Bank’s head of office for Bosnia and Herzegovina and Montenegro Emanuel Salinas to discuss the activities carried out by the central bank in recent months. Zugic expressed commitment to further improve the regulatory framework of the central bank and bring it in line with the EU standards.
Zugic also said that economic growth has been improving, unofficially reaching around 4% in H1. The trends in the banking sector are also positive, Zugic affirmed. The central bank measures to ensure the stability of the financial sector and the government’s fiscal consolidation measures will bring the government closer to signing a budget support agreement with the World Bank, Zugic said. He added that the Montenegrin delegation is preparing to take part in the forthcoming Annual Meetings of the World Bank and the IMF in Washington DC in October.