World Bank2013-02-252013-02-252007-02https://hdl.handle.net/10986/12493This report assesses Montenegro's public and external debt sustainability under alternative scenarios. The baseline scenario assumes continued implementation of a macroeconomic stabilization and structural reform program, while the low case scenario describes the alternative of a sluggish growth environment due to policy slippage/weak reform. In addition, other sensitivity tests are conducted in order to highlight the vulnerability of the baseline case to specific shocks. The report concludes that Montenegro's public debt would be highly sustainable if economic reforms continue at their current pace, and the 2007 fiscal policy is maintained over the coming years.en-USCC BY 3.0 IGOACCOUNTINGAMORTIZATIONARREARSASSET POSITIONAUCTIONBALANCE OF PAYMENTSBALANCE SHEETSBANK CREDITBANK DEBTBANKING SECTORBANKING SYSTEMBANKRUPTCYBASELINE SCENARIOBASIS POINTSBONDBONDSBURDEN OF ADJUSTMENTCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL INFLOWSCAPITALIZATIONCENTRAL BANKCOMMERCIAL BANKSCONTINGENT LIABILITIESCONTINGENT LIABILITYCREDIT GROWTHCREDITORSCREDITWORTHINESSCURRENCYCURRENCY COMPOSITIONCURRENCY MISMATCHESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDATA COLLECTIONDEBTDEBT BURDENDEBT CRISESDEBT DATADEBT DYNAMICSDEBT MANAGEMENTDEBT RATIODEBT RATIOSDEBT RELIEFDEBT SERVICEDEBT STOCKDEBT SUSTAINABILITYDEBTSDEPOSITSDEVELOPMENT BANKDISBURSEMENTDISBURSEMENTSDOMESTIC DEBTDOMESTIC INVESTMENTECONOMIC DEVELOPMENTSEDUCATION SERVICESEQUITY INVESTMENTEXCHANGE RATEEXCHANGE RATE MOVEMENTSEXCHANGE RATESEXPENDITUREEXPENDITURE POLICIESEXPENDITURESEXPORT GROWTHEXTERNAL BALANCEEXTERNAL DEBTEXTERNAL DEBTSEXTERNAL INDEBTEDNESSFACE VALUEFINANCIAL MARKETFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SYSTEMFINANCING REQUIREMENTSFISCAL ADJUSTMENTFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL DEFICITSFISCAL POLICYFISCAL STANCEFIXED INTERESTFIXED INTEREST RATEFIXED INTEREST RATESFLOATING INTEREST RATEFLOATING RATEFOREIGN BORROWINGFOREIGN CURRENCYFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN FINANCINGFOREIGN LOANSGLOBAL DEVELOPMENT FINANCEGOVERNMENT BUDGETGOVERNMENT BUDGET DEFICITGOVERNMENT DEBTGOVERNMENT DEFICITGOVERNMENT EXPENDITUREGOVERNMENT REVENUEGOVERNMENT SPENDINGGRACE PERIODGROSS DOMESTIC PRODUCTGROWTH RATEHEALTH SECTORHOLDINGHUMAN RESOURCEIMPORT TARIFFSINCOME TAXINDEBTEDNESSINFLATIONINFLATION RATEINSTITUTIONAL CAPACITYINSURANCEINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDSINVESTMENT BANKLABOR MARKETLAND TITLELENDERLENDER OF LAST RESORTLENDING DECISIONSLEVEL OF DEBTLIQUIDITYLIQUIDITY RATIOSLOANLOCAL CURRENCYLOCAL GOVERNMENTLOCAL GOVERNMENTSLONG-TERM DEBTMACROECONOMIC DATAMACROECONOMIC ENVIRONMENTMACROECONOMIC POLICIESMACROECONOMIC PROJECTIONSMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMIC VARIABLESMARKET ACCESSMARKET ENVIRONMENTMARKET INTEGRATIONMATURITYMATURITY STRUCTUREMINISTRY OF FINANCEMONETARY FUNDMONETARY POLICYNATIONAL ACCOUNTSNATIONAL SAVINGNATIONAL SAVINGSNET DEBTNET PRESENT VALUEOPEN ECONOMYOUTSTANDING PUBLIC DEBTPENSIONPENSION FUNDPENSION SYSTEMPENSIONSPERSONAL INCOMEPERSONAL INCOME TAXPOVERTY REDUCTIONPRIVATE CREDITORSPRIVATE DEBTPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE SECTORPRIVATE SECTOR DEBTPRIVATE SECTOR INVESTMENTPROPERTY RIGHTSPROPERTY RIGHTS PROTECTIONPRUDENTIAL SUPERVISIONPUBLIC DEBTPUBLIC DEBT STOCKPUBLIC DEBTSPUBLIC ENTERPRISESPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SECTOR BORROWINGPUBLIC SECTOR DEBTPUBLIC SECTOR DEFICITREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESRECURRENT EXPENDITUREREFORM PROGRAMREMITTANCESREPAYMENTREPAYMENT PERIODREPAYMENTSRESERVESRESOURCE CONSTRAINTSRETURNSECURITIESSHORT TERM DEBTSSHORT-TERM DEBTSOLVENCYSTOCK ADJUSTMENTSSTOCK MARKETSSTRUCTURAL REFORMSTRUCTURAL REFORMSSUSTAINABILITY ANALYSISSUSTAINABLE FISCAL POLICYTAX RATESTRADE BALANCETRANSACTIONTRANSACTION COSTSTRANSFER PAYMENTSTRANSITION COUNTRIESTRANSPARENCYTREASURYTREASURY BILLSTURNOVERVARIABLE INTEREST RATESWITHDRAWALWorld Bank10.1596/12493