IMF Staff Country Reports

Montenegro: Financial Sector Assessment Program-Framework for NonPerforming Loans Workout and Insolvency and Creditor Rights-Technical Note

June 28, 2016

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Montenegro: Financial Sector Assessment Program-Framework for NonPerforming Loans Workout and Insolvency and Creditor Rights-Technical Note, (USA: International Monetary Fund, 2016) accessed December 22, 2024

Summary

This paper examines the current state of nonperforming loans (NPLs) in Montenegro, assesses the regulatory and supervisory framework as well as the insolvency and creditor rights regime, and makes recommendations for strengthening the framework. The paper evaluates the legal, regulatory, and supervisory regimes in four key areas: (1) creditor rights and enforcement systems (for secured and unsecured credit); (2) debt recovery and informal enterprise workout practices; (3) formal insolvency system (liquidation and reorganization proceedings); and (4) effectiveness of the relevant institutional, regulatory, and supervisory frameworks in implementing laws, regulations, and supervisory requirements in this area. The local and regional boom-bust cycle has left a legacy of high NPLs in Montenegro.

Subject: Asset and liability management, Banking, Collateral, Debt restructuring, Financial institutions, Loans, Mortgages, Nonperforming loans

Keywords: Bank account, Collateral, Coverage ratio, CR, Credit risk, Debt restructuring, Debtor's house exemption, Enforcement procedure, Enterprise restructuring, ISCR, Loans, Management goal, Management practice, Mortgage registration procedure, Mortgages, Nonperforming loans, NPL portfolio, NPL resolution, Promissory note, Resolution practice, Resolution strategy

Publication Details

  • Pages:

    36

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/200

  • Stock No:

    1MNEEA2016006

  • ISBN:

    9781498325653

  • ISSN:

    1934-7685

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