The authorities broadly concur with staff’s appraisal and agree with the thrust of the recommendations outlined in the Article IV report and FSSA. On behalf of the Montenegrin authorities, we thank the Article IV staff and the FSAP team for the constructive and fruitful discussions during the missions’ visit. They resulted in the comprehensive documents, which provide the authorities with useful recommendations and guidance for their future policy decisions. The authorities pursue an investment-led growth strategy, which brings benefits, but also challenges. Growth rebounded strong, with robust rates to maintain over the medium term, while the fiscal position deteriorated. Given the context of a small and open economy, vulnerable to external shocks and heavily reliant on external financing, the authorities share staff’s concern on the public debt’s risk profile. The authorities are committed to introduce further, sizable fiscal consolidation adjustments. In addition, the authorities are strongly focused on raising productivity. However, the authorities are aware that the upcoming elections, planned later this year, may affect the momentum of reforms’ implementation. The financial sector is liquid and solvent, but prone to distress. The credit contraction finally slowed down and the reduction in non-performing loans (NPLs) shows that the quality of financial assets significantly improved.