The Montenegrin government will conclude an arrangement with the World Bank for a EUR90m loan by year-end, Finance Minister Darko Radunovic and central bank (CBCG) Governor Radoje Zugic said during their annual meetings with IMF and World Bank officials in Washington D.C. The central bank said that the meetings with World Bank officials, including the bank’s Vice President for Europe and Central Asia Cyril Muller, were successful. Muller commended the government for improving the fiscal position and strengthening the financial stability. He also said that economic growth prospects have also improved and that this was reflected in the actions of the rating agencies (Moody’s, S&P), which raised the country’s outlook from negative to stable.
The government and World Bank officials also discussed the 2018 budget draft and ways to reduce the grey economy through digital fiscalization. The World Bank also assessed Montenegro’s financial system as relatively stable and secure. The stability of the banking system has been bolstered by the strengthening balance sheet of the banks, the recovery of lending and the significant decline of bad loans, the World Bank said. It also concluded that the recent fiscal policy reforms would create preconditions for efficient debt management and ensure the sustainability of the public debt in the medium term.