The state intensified negotiations on borrowing with domestic banks

Published on 21. October 2022., News

In accordance with the determination of the Ministry of Finance and the Government to provide the missing funds for the financial rounding of the budget year on the domestic market, by issuing government bills and through credit arrangements, Finance Minister Aleksandar Damjanović intensified talks with the banking sector. Thus, a constructive meeting was held today with the managers of all eleven financial institutions present on the Montenegrin market.

The topic of the dialogue was the situation in the financial sector, as well as the possibilities of potential arrangements for providing the missing funds for smooth budget functioning.

– The Minister said that the Government advocates a partnership relationship with the banks, expressing the expectation that the banks will also recognize the state’s needs, the satisfaction of which would not be to the detriment of the economy, but with the aim of achieving fiscal sustainability and full financial and economic balance of the system, which will bring benefits both the state and the banking sector, but also the real sector – the Ministry of Finance announced.

Representatives of the banking sector welcomed the initiative of the Ministry of Finance for the format of open discussions on topics of systemic importance, expressing their willingness to participate in potential arrangements within their own capabilities. Damjanović thanked for the response and interest shown by all present banks in Montenegro, stressing that he expects successful cooperation for mutual benefit, since the stability of public finances and the financial market, as he assessed, is a prerequisite for the sustainability of the banking sector itself.

– The government’s absolute priority is to preserve the stability of public finances and enable the smooth functioning of the system in the coming period, in which cooperation with the domestic banking sector is very important – Damjanović concluded, adding that open dialogues of this format will be held in the future on all topics of common interest, local media writes.