IMF warns Montenegro over finances

An IMF mission visiting Montenegro has warned that the country will have problems with its public finances unless there is major FDI. The IMF representatives told the meeting of the Montengrin parliamentary economic board, closed to the public, that they did not see how the GDP would grow without the direct foreign investment, which, due to the financial crises, would not be at the same level recorded in previous years. IMF warns Montenegro over finances The International Monetary Fund (IMF) said that Podgorica's draft 2009 budget was "unrealistic, setting high expectations". The IMF expectes a drop in public spending and growth of the public debt, while the representatives of this international financial organization were also not optimistic about VAT revenues, Podgorica media reported. The IMF estimated that the government’s measures to reduce the effects of the global financial crisis, such as the lowering of the income tax, subsidies to the electrical bills payments and the increase of capital investments, would “raise the deficit.” The mission members arrived in Montenegro on Dec. 3, meeting also with an ongoing crisi the First Bank, controlled by Prime Minister Milo Djukanovic's brother. The bank has asked the state to grant it a loan worth EUR 40mn. The IMF mission visit ends on Dec. 16, after which a report on the economic situation in Montenegro will be presented to the public.

IMF warns Montenegro over finances

The International Monetary Fund (IMF) said that Podgorica's draft 2009 budget was "unrealistic, setting high expectations".

The IMF expectes a drop in public spending and growth of the public debt, while the representatives of this international financial organization were also not optimistic about VAT revenues, Podgorica media reported.

The IMF estimated that the government’s measures to reduce the effects of the global financial crisis, such as the lowering of the income tax, subsidies to the electrical bills payments and the increase of capital investments, would “raise the deficit.”

The mission members arrived in Montenegro on Dec. 3, meeting also with an ongoing crisi the First Bank, controlled by Prime Minister Milo Đukanović's brother.

The bank has asked the state to grant it a loan worth EUR 40mn.

The IMF mission visit ends on Dec. 16, after which a report on the economic situation in Montenegro will be presented to the public.