Montenegro had euroised even before it left the union with Serbia in 2006, and continued that strategy afterwards, despite recurring problems with fiscal deficits and a rising government debt ratio.

Years Targets and attainment Classification
2001-17 joined with Serbia in Federal Republic of Yugoslavia and its successor State Union of Serbia and Montenegro, but beginning to decouple with adoption of Deutsche Mark as parallel currency 1999 and sole legal tender end-2000, then euro; 2006 referendum followed by independence; government aims to join EU; central bank (set up 2000) concerned with credit growth, banking supervision and regulation; large and growing banking sector, mainly foreign-owned, highly concentrated; post-independence boom followed by large impact from GFC; central bank responds strongly, but banking system needs major and lengthy adjustment; structural fiscal deficit emerges and leads to increasingly problematic long-term rise in debt ratio; 2010 legal changes raise central bank independence and tighten banking regulation; very large highway project from 2015 further increases debt ratio, despite strategy of fiscal consolidation; statistical data better by end  of period but still needing improvement use of another sovereign’s currency UASC

Selected IMF references: SR Serbia and Montenegro 2005 p11; SI 2008 pp5, 11-14, 65-6; SR 2008 pp10-11, 20-1; SR 2009 pp7-9, 14-16; SR 2010 pp5-7, 11-14; SR 2011 p11; SR 2012 pp15-16; SR 2015 pp14-18; SRIA 2017 pp6-7.

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