Council of the Central Bank of Montenegro considered and adopted Report on business operations and implementation of the Central Bank policy for October 2019, which stated that activities of the Central Bank had been implemented in accordance with the established working program. Decision on issuing working permit for the claim redemption company Foldan Financial LLC Podgorica and Decision on issuing working permit for Moj kredit LLC Podgorica.
“It was stated that banking system is stable, safe and without system vulnerabilities”, states the report.
Council adopted Report on the results of the survey on credit activity of the banks for the third quarter of 2019 which indicated that credit standards have been relieved as a result of the enhanced market competition.
The Council adopted Financial plan for 2020, prepared on the basis of the financial plan for 2019 and projections of revenues and expenditures for the next year.
“Financial plan stipulates conditions for the achievement of goals and performance of CB functions”, reads the report.
The Council considered and adopted reports on the business performance of MFI, leasing and factoring companies and Investment and Development Fund on 30 September 2019.
“It was stated that a 5% increase in total capital has been recorded as well as 29,9% increase in liquid assets, with 2% decline in gross poor-quality credits”, it was said in the CB.
As far as leasing companies are concerned, this sector was characterized by stability, positive financial result and increase in assets, claims and capital.
“Factoring sector, composed of only one factoring company, recorded 2,2 % increase in total balance sum and a 1,3% increase in total capital and a 2,3% increase in liquid assets”, said CB representatives.
Report on the performance of Investment and Development Fund states that its performance was characterized by 2,8% increase in total loans, a 22,3% decline in gross loans with over 30-day default period, and a 27,8% decline in gross loans with 90-day default period.
The Council adopted Macroeconomic report of the CB for third quarter of 2019.
During first nine months of the current year, an increase in the construction activities and tourism has been recorded.
Net FDI inflow was positive (22,5%) and current account deficit has been reduced by 3%.
Consumer prices have recorded a slight increase (0,1%).
Model forecast for December 2019 projects inflation ranging from 0,3 to 1,2% with central tendency of 0,8%.
