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Europe > Montenegro

You are looking at 1 - 10 of 14 items for :

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Cover Selected Issues Papers
Surviving Low Interest Rates Central Banks in Kosovo and Other Western Balkan Countries: Republic of Kosovo
Mr. Si Guo
Interest income from foreign reserves is one of the main revenue sources for most emerging market central banks. For central banks in the Western Balkan region, the low global interest rates during 2008–2021 negatively affected their revenues, and the impact was more pronounced for central banks in Kosovo, Montenegro, and Bosnia and Herzegovina because they cannot use seigniorage to finance their operations. This paper explores how these central banks coped with the long period of low-interest rates. The main finding is that the decline in interest income from foreign reserves was partially compensated by higher fees, commissions, and other regulatory revenues.
Keywords:
Central bank; Low interest rates; Kosovo; Montenegro; Bosinia; Herzegovina; interest income; central banks in Kosovo; emerging market central banks; rising interest rates; personnel cost-to-GDP ratio; Income; International reserves; Central bank rates; Government securities; Exchange rate arrangements; Global
Cover IMF Staff Country Reports
Montenegro: Staff Report for the 2014 Article IV Consultation
International Monetary Fund. European Dept.
KEY ISSUES Context: Moderate growth is continuing; however credit and wage growth are weak. The level of nonperforming loans (NPLs) remains high and public debt has risen sharply in recent years. Fiscal policy: Medium-term funding needs to roll over existing debt and to fund budget deficits are large. A new highway, budgeted to cost about one quarter of GDP, will cause deficits to widen and add to public debt. The draft 2015 budget shows appropriate restraint on other spending, but a long period of strong fiscal discipline will be needed to manage fiscal risks. Laying out clear long-term plans for managing the public finances would boost credibility and reduce risks to market access. Fundamental expenditure reform, especially of the pension system and the public sector wage bill, would be an essential part of such plans. Financial sector: The banking system’s liquidity appears comfortable; however, profitability is low and lending spreads are high. Regulatory provisioning is set higher than that reported under international accounting standards, but a wide range of provisioning levels across banks and weak incentives to take losses remain concerns. A more transparent and comprehensive reporting environment would be beneficial. Reforms to ensure better enforcement of contracts and collateral would help bring down structural lending risk premia. Structural reform: Higher levels of labor participation and employment are needed to boost potential growth and safeguard the public finances. Ensuring that wages adjust in line with productivity alongside reforms to achieve better employment outcomes and boost productivity would enhance the economy’s ability to respond to macroeconomic shocks, and are even more important in a country that lacks its own currency and with decreasing fiscal buffers.
Keywords:
ISCR; CR; authority; growth potential; public-sector wage bill; growth; banking system health indicator; Montenegrin authority; credit condition; financial asset; Loans; Current account balance; Income; Personal income; Global; Eastern Europe
Cover IMF Staff Country Reports
Republic of Montenegro: 2008 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Republic of Montenegro
International Monetary Fund
This 2008 Article IV Consultation highlights that Montenegro has made significant progress in overhauling its economy. The authorities have taken several welcomed steps to help strengthen financial sector stability. Executive Directors have welcomed the structural reforms implemented over the past few years and financial integration that have helped Montenegro attract substantial foreign direct investment and generate rapid growth with moderate inflation. Directors have also supported the authorities’ actions to bolster financial system stability and reduce vulnerabilities by intensifying supervisory oversight, tightening prudential regulations, and lifting bank capitalization requirements.
Keywords:
ISCR; CR; FDI inflow; Montenegro; authority; deposit; credit growth; Montenegrin authorities; parent bank; response to the financial crisis; Commercial banks; Credit; Government finance statistics; Foreign direct investment; Global; Europe
Cover IMF Staff Country Reports
Republic of Montenegro: Selected Issues
International Monetary Fund
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.
Keywords:
ISCR; CR; Montenegro; tourism; fiscal policy; tourism sector; debt target; CEE country; tourism industry; tourism enclave; tourism activity; FDI inflow; competitor tourism country; Commercial banks; Fiscal stance; Current account deficits; Global; Western Europe; Eastern Europe; Baltics
Cover IMF Staff Country Reports
Serbia and Montenegro: Third Review Under the Extended Arrangement and Requests for Waiver of a Performance Criterion and Rephasing of Purchases
International Monetary Fund
This paper examines Serbia and Montenegro’s Third Review Under the Extended Arrangement and Requests for Waiver of Performance Criterion. Serbia and Montenegro’s recent economic performance has been mixed, combining excellent progress in some areas with an uncomfortably large current account deficit and modest growth in output and exports from low levels. The envisaged tightening of fiscal policy is broadly appropriate—albeit overly reliant on revenue measures. Achieving the fiscal deficit target will help narrow the current account deficit and place the fiscal and external accounts on sustainable paths.
Keywords:
ISCR; CR; policy; inflation objective; authority; SDR; macroeconomic policy; authorities of Serbia and Montenegro; privatization revenue; executive board discussion; government in Serbia; Privatization; Commercial banks; Monetary base; Global
Cover IMF Staff Country Reports
Serbia and Montenegro: Second Review Under the Extended Arrangement and Requests for Waiver and Modification of Performance Criteria, and for Extension of Repurchase Expectations
International Monetary Fund
Economic performance in 2002 was generally favorable with good policy implementation, but considerable risks remain. Structural reforms have fallen behind program expectations, but the delays are being addressed. The discussions highlighted the need for prudent policies and strengthening of structural reforms. The structural reforms will focus on tax administration and expenditure management, banking supervision and resolution, and privatization. Monetary and exchange rate policies in Serbia should continue to balance the inflation and external objectives. Serbia and Montenegro's performance under the Extended Arrangement has remained good.
Keywords:
ISCR; CR; indirect tax regime; authority; NBS purchase; creditor support; SDR; authorities of Serbia and Montenegro; union state; NBS-Finance Ministry Committee; Commercial banks; Currencies; Monetary base
Cover IMF Staff Country Reports
Federal Republic of Yugoslavia: 2002 Article IV Consultation, Third Review Under the Stand-By Arrangement, and Request for an Extended Arrangement—Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for the Federal Republic of Yugoslavia
International Monetary Fund
This paper assesses the Federal Republic of Yugoslavia’s (FRY) 2002 Article IV Consultation, Third Review Under the Stand-By Arrangement (SBA), and a Request for an Extended Arrangement. Despite the impressive achievements since late 2000, when FRY succeeded to membership in the IMF, the challenges facing the authorities remain daunting. The FRY authorities’ medium-term program of stabilization sets a good basis for achieving sustainable growth and a viable external position, and deserves the continued support of the IMF through completion of the third review under the current SBA and approval of the proposed extended arrangement.
Keywords:
ISCR; CR; Yugoslavia; overstaffed enterprise sector; staff; state; bank reform; authorities of the Federal Republic of Yugoslavia; Montenegrin authorities; FRY authorities; exchange system of the Federal Republic of Yugoslavia; Commercial banks; Debt service; Exchange rates; Global
Cover IMF Staff Country Reports
Federal Republic of Yugoslavia: First Review Under the Stand-By Arrangement and Request for a Waiver
International Monetary Fund
The government has implemented the IMF-supported program with impressive firmness and has moved quickly to adopt corrective measures as needed to ensure that it stays on track. Much has been accomplished in stabilization and structural reform within a short period. Achievement of the fiscal objectives will be challenging, in both Serbia and Montenegro. Continued progress in structural reform is important. The Federal Republic of Yugoslavia needs the continued support of donors and creditors. The World Bank is closely involved in the reconstruction efforts.
Keywords:
ISCR; CR; FRY authorities; stand-by credit; fry economy; Yugoslavia; SDR; executive board discussion; inflation pressure; Currencies; Commercial banks
Cover IMF Staff Country Reports
Federal Republic of Yugoslavia: Request for a Stand-By Arrangement
International Monetary Fund
The new government of the Federal Republic of Yugoslavia has formulated and started to implement an ambitious program of stabilization and reform with impressive speed and commitment. The program provides for macroeconomic policies designed to reduce inflation and support reconstruction coupled with bold reforms. The policy achievements so far have been impressive. Prudent policies alone cannot ensure progress toward sustainable growth and external viability. The program sets the basis for the country in achieving sustainable output growth and a viable external position.
Keywords:
ISCR; CR; FRY authorities; Yugoslavia; stand-by credit; financial asset; agreement; FRY economy; executive board discussion; tariff schedule; Commercial banks; Arrears; Debt service
Cover IMF Staff Country Reports
Federal Republic of Yugoslavia: Membership and Use of Fund Resources—Request for Emergency Post-Conflict Assistance
International Monetary Fund
The Federal Republic of Yugoslavia is faced with the task of stabilizing and reviving a devastated economy after years of military conflicts, sanctions, and economic mismanagement. A weakened institutional capacity and the still evolving political situation is a cause for concern. A short-term macroeconomic strategy is required to bring down inflation. The fiscal position should be improved, and the continued incurrence of expenditure arrears should be avoided. The government should adopt a comprehensive economic program of stabilization and reform that can be supported by the IMF.
Keywords:
ISCR; CR; FRY authorities; Yugoslavia; FRY's economy; deficit; economy; expenditure arrears; General government service; IMF's policy; Arrears; Budget planning and preparation; Commercial banks