02 April 2019 - Montenegrin Finance Minister Darko Radunović and analysts from Moody's Credit Agency, Heiko Peters and Hannah J.V. Dimpker, who currently reside in Podgorica for the regular annual visit of the Agency, held a formal meeting on April 2 to discuss economic, fiscal and financial conditions in Montenegro.
Minister Radunović informed the Moody’s analysts about the results in 2018 and emphasized that the beginning of 2019 already looks promising, considering that the figures for January and February show that budget revenues were 18.5% higher than in the same period last year and 6.3% higher when compared to the planned revenues for this period.
Also, the Finance Minister reminded the present parties that Montenegro is currently in its third year of fiscal consolidation and that the measures have already given significant results.
"2019 is an important year for Montenegro because of the work on structural reforms, but also because this year will show a downturn concerning public debt, "the Minister said and added that a healthy investment cycle in energy, tourism, transport, and infrastructure was launched in Montenegro.
Representatives of Moody's Credit Agency have met with representatives of the Ministry of Finance, the Central Bank of Montenegro, the banking sector and international organizations in a two-day visit to Montenegro to collect data based on which they will assess the credit rating of the state.
According to the assessment of the Agency, Montenegrin credit rating would likely be upgraded if there would be full or close to full implementation of the government's consolidations measures showing up in improving government's debt metrics placing the government's debt trajectory on a sustainable downward path in combination with Moody's heightened confidence that the highway-related fiscal risks are contained.
Also, a credit positive would be the completion of a majority of the EU's acquis communautaire, which would support progress towards EU accession. Equally, a reduction in contingent liabilities, stemming from a combination of materially lower government guarantees and lower risks posed by banks and SOEs, would also be credit positive.
