The World Bank is ready to provide professional and technical support to Montenegro in order to implement a loan based on public policies (DPL arrangement) as soon as possible, said Christopher Sheldon, head of the World Bank Office for Montenegro. As he stated, the true value of this operation will be recognized through the ranking of Montenegro on the international capital markets.
As announced by the Ministry of Finance, Minister Aleksandar Damjanović and his associates held a final meeting with Sheldon and World Bank analysts, as part of a mission dedicated to harmonizing the partnership framework for contracting DPL arrangements.
The focus of the further work of the two institutions, as announced at the meeting, is the definition of a sustainable macroeconomic framework and the creation of a reform program that will have a strong fiscal support and include measures that directly affect growth, competitiveness and environmental protection.
Damjanović expressed his readiness to fully respond to all the challenges that the reform process imposes, remaining consistent with the Government’s commitment to preserve the basic tax rates and wages in the public sector, as well as restrictive and conservative planning of the revenue side, to reduce the negative effect of inflation on the activities of the economy and living standard of citizens.
He pointed out that there is definitely room for strengthening the revenue side of the budget, primarily through tax policy measures and expanding the tax scope, and that the rationalization of consumption will be brought to an optimal level, as well as that work will be done even more radically to suppress the gray economy.
Sheldon expressed his satisfaction with the cooperation with Montenegro, assessing that the meeting is a good continuation of the talks started during the annual meetings in Washington, adding that the World Bank team is here to help Montenegro create a good fiscal position and manage the deficit more easily.
He also conveyed the willingness of the institution he represents to provide professional and technical support in order to implement the DPL arrangement in the shortest possible time, especially bearing in mind that the true value of the mentioned operation will be recognized through the ranking of Montenegro on international capital markets.
Representatives of the World Bank stated that this year’s macroeconomic framework is more sustainable compared to previous projections for this year due to stronger economic activity and higher revenues.
The World Bank team also held a working meeting with the management of the Revenue and Customs Administration, led by the acting director, Mr. Vladimir Bulajić, which was also attended by Minister Damjanović. The meeting discussed the implementation of the Tax Administration Reform Project (RARP), local media writes.
