The Council of the Central Bank of Montenegro (CBCG) has adopted a Decision on Amendments to the Decision on Increasing the Countercyclical Capital Buffer Rate, raising this rate to one percent.
A press release states that the CBCG had previously conducted an analysis of cyclical systemic risks in Montenegro, which revealed an intensification of credit growth, an increase in real estate prices, and continued uncertainty caused by geopolitical factors.
The release also notes that banks are required to implement this new rate starting January 1, 2026.
During the meeting, the Council also adopted a Decision on Amendments to the Decision on Macroprudential Measures related to loans granted by credit institutions to individuals.
“The Decision extends previously adopted macroprudential measures until January 1, 2026. These measures impose certain maturity restrictions under which credit institutions can grant cash loans to individuals under specific conditions, aiming to prevent the accumulation of risks in the segment of loans to individuals that are not adequately collateralized,” the CBCG clarified.
Additionally, the Council of the Central Bank of Montenegro reviewed the Opinion on the Medium-Term Debt Management Strategy Proposal for the period 2025-2027, supporting the adoption of the document. They noted that it has been analytically improved, strengthened with more information, and represents a significant step forward compared to previous debt management strategies.
The release also mentioned that the Council discussed other materials within its scope of authority.
