Europe > Montenegro
On behalf of the Montenegrin authorities, we would like to thank Mr. Seshadri and his team for their in-depth report and constructive engagement, including the in-person consultations in Podgorica last November. We would like to offer the following comments.
This Technical Assistance (TA) report focuses the compilation of financial soundness indicators (FSI) for the deposit takers (DTs), which cover 15 commercial banks, using the chart of accounts (COAs) and supervisory series as source data. The regulatory and accounting practices of the DTs are broadly in line with the FSI Guide, which defers to Basel principles and International Accounting Standards. The mission recommended an action plan with the following priority recommendations to support progress in the FSI compilation. The mission highlighted the need to complement the FSI data with the corresponding metadata. Metadata should also contain information on the content and coverage of the FSIs, as well as the accounting conventions and other national guidelines. As the financial performance of commercial banks’ counterpart sectors as well as key markets has direct impact on the soundness of the financial sector, it is recommended to coordinate with regulators of other financial institutions that are not under the Central Bank of Montenegro’s supervision to draw a work program to collect data for compiling FSIs for other financial corporations.
Abstract
Proceedings of a conference co-hosted by the Bank of Albania and the International Monetary Fund in May 2017.
Strong growth this year looks set to continue into the medium term. The authorities are seeking to accelerate growth and development, mainly through new infrastructure projects, but also with fiscal incentives. Although this growth strategy can bring substantial gains, it also poses sizeable risks, notably to public finances, and also in terms of the allocation of capital and financial stability. Gross debt has increased substantially over the past year and looks likely to increase significantly, to 80 percent of GDP. Staff recommends immediate and durable fiscal consolidation measures to limit risks to the public finances and to ensure favorable conditions for funding, particularly to the extent that further infrastructure projects would require additional public debt. Fiscal consolidation is also important for improving external balance, especially as the economy lacks independent monetary policy. A credible strategy to safeguard the health of the public finances would address longstanding problems with public expenditures, such as the very high level of spending on pensions and public sector wages. Measures should be supported by strengthening the fiscal framework and public financial management.
Euroization has served Montenegro well by anchoring inflation expectations, and shifted the burden of adjustment to fiscal and structural policies. The paper looks at trends and how developments in the tourism industry have contributed to the shaping of the economy. The lack of monetary and exchange rate policies in Montenegro puts a premium on a well-designed and appropriate fiscal policy. This paper has presented a dynamic analysis of the structure of the banking sector of Central and Eastern European countries.
Abstract
I would like to thank the Bank of Albania, the IMF, and the Swiss Embassy for your kind invitation to speak at this forum. I was quite interested in the various discussions on the macroeconomic vulnerabilities of highly euroized economies in the context of negative euro area interest rates. These discussions provide a good background for my presentation on reserve management in the region.
Abstract
I would like to thank all the participants for the presentations and for the discussions that we have had. I said yesterday that I was looking forward to learning from all of you, and I can report to you that I have indeed learned a lot and I hope that each of you has learned as well.
Abstract
I will cover the conduct of monetary policy in Serbia, with regard to our main financial stability concerns.