Montenegro: Request for Purchase under the Rapid Financing Instrument; Press Release; Staff Report; and Statement by the Executive Director for Montenegro
IMF Staff Country Reports, June 25, 2020
Source details
- Canonical URL
- Montenegro: Request for Purchase under the Rapid Financing Instrument; Press Release; Staff Report; and Statement by the Executive Director for Montenegro
Other formats
Bibliographic details
- Published: June 25, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513548661.002
Summary
- The COVID-19 pandemic will hit Montenegro hard, as tourism is a key industry.
- Fiscal space has eroded in recent years due to large public capital outlays.
- The COVID-19 crisis is creating new budgetary strains as health spending and other expenditures rise, while the economic contraction lowers revenues.
Major themes and risks
- Tourism: central to the economy and particularly vulnerable to the pandemic shock.
- Fiscal position: constrained by prior large public capital outlays, limiting policy space.
- Health and expenditure pressures: increased health spending and other expenditures in response to COVID-19.
- Revenue shock: economic contraction will lower government revenues, widening financing needs.
Subjects and keywords (as listed)
- Subjects: Banking, Capital spending, COVID-19, Economic sectors, Expenditure, External debt, Financial sector, Fiscal policy, Fiscal stance, Health, Public debt, Tourism
- Keywords: assistance, Capital spending, COVID-19, CR, emergency financing request, Executive Board discussion, Financial sector, financing, financing gap, Fiscal stance, Global, IMF lending tracker, ISCR, liquidity withdrawal requirement rate, Tourism
Content in this bundle
- 1mneea2020002