In the previous period, the Central Bank of Montenegro improved the framework for dealing with non-performing loans. This resulted in the reduction of NPL, which at the end of May 2023 is 5.49%, Governor Radoje Žugić announced.
As reported, on Thursday, Žugić met with the World Bank team, which is engaged in the preparation of a report on the assessment of the World Bank’s support to Montenegro within the framework of guarantees based on public policies (PBG1 and PBG2), approved in 2018 and 2020.
In order to prepare the report, the meeting discussed the activities undertaken by the CBCG in the direction of approving earlier PBG arrangements, which were primarily related to strengthening the resilience of the financial sector.
Governor Žugić emphasized that the previous two guarantees based on public policies contributed to the stability of the financial system, and that “the best indicator of its current quality is the fact that in the preparation of the new development loan (DPL) there are no restrictions related to the financial system, i.e. the business of CBCGW.
Governor Žugić reminded that in the previous period, the CBCG improved the framework for dealing with non-performing loans, which resulted in the reduction of NPLs, which at the end of May 2023 amounted to 5.49%.
– The stability of the banking sector is also confirmed by the high capital adequacy ratio, which currently stands at 18.94%, as well as the record high level of deposits, as one of the proofs of strong trust in the banking system – announced Žugić.
Representatives of the World Bank praised the stability of the banking system and the quality of cooperation with the Central Bank of Montenegro through sets of technical assistance in the field of supervision and payment transactions.
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