Europe > Montenegro

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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.
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.