|Population (2016)||622 218 (0.00%)|
|EU Status||not a member, candidate since 2008|
|National Currency||EUR (Euro)|
|Nominal GDP (2015)||3.6 bln EUR (+0.03%)|
|Nominal GDP per Capita (2014)||5 561 EUR (+0.03%)|
|Real GDP Growth (2015)||3.4 % (2014: 1.8 %)|
|CPI, Year Average (2015)||1.6 % (2014: -0.7 %)|
|Credit Ratings (as of Sep 2016)|
|Moody's||B1||highly speculative, outlook negative|
|Double Taxation Agreements||20 signed agreements|
|Automatic Exchange||no commitment to start|
|FATCA||IGA agreed on 30 June 2014, Model 1|
|Financial Market Development||4.2 (max 7.0)||rank: 54th out of 138 countries|
|Banks' Soundness||4.2 (max 7.0)||rank: 103rd out of 138 countries|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||50 000 EUR|
|Country Ceiling for Deposits|
|Foreign Currency||B2||highly speculative|
|Banking Sector Structure|
|Number of Banks||16|
|Crnogorska komercijalna banka AD Podgorica||Prva banka Crne Gore AD Podgorica|
|NLB Montenegrobanka AD Podgorica||Hipotekarna banka AD Podgorica|
|ERSTE Bank AD Podgorica||Hypo Alpe-Adria Bank AD Podgorica|
|Societe Generale banka Montenegro AD|
|List of Banks in Montenegro|
Montenegro does not have its own currency: since 2002 Montenegro has been using Euro unilaterally.
According to Eurostat, nominal GDP of Montenegro in 2015 was 3.6 bln EUR.
Montenegro outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.1% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 3.4% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2014, nominal GDP per capita in Montenegro was 5 561 EUR.
Montenegro has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -45.9% over the past 10 years (2004 - 2014). GDP per capita at PPP in 2015 - 2021 are IMF's estimates.
According to , inflation rate in Montenegro in 2015 expressed as annual percentages of average consumer prices was 1.6% which was above the Euro Area average (0.0%) and above the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Montenegro signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Montenegro didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Montenegro agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Montenegro are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Montenegro continues to demonstrate firm resolve to sign the IGA as soon as possible.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Montenegro is scored 4.2 out of maximum 7.0 and ranked 54th out of 138 analysed economies. Soundness of banks is scored 4.2 bringing Montenegro into the 103rd place, trustworthiness and confidence of financial market is scored 5.0 (26th place).
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Montenegro are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Montenegro (including branches of foreign banks), branches of Montenegro's banks abroad|
|Eligible Depositors||natural persons, entrepreneurs, legal entities|
|Covered Accounts||all deposit accounts|
|Maximum Protected Amount||50 000 EUR|
|Paid In Currency||EUR|
Table 1. Deposit guarantee scheme in Montenegro.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Foreign currency deposit ceiling for Montenegro] is B2 (highly speculative).
Currently there are 16 credit institutions operating in Montenegro.
All the credit institutions operating in Montenegro can be classified into several categories. Table 2 summarises the number of banks in each category.
|Category||Number of Banks|