## 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](https://www.imf.org/en/publications/cr/issues/2020/06/25/montenegro-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49535)

## Other formats

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## Bibliographic details
- Published: June 25, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513548661.002

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### 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

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_Source: https://www.imf.org/en/publications/cr/issues/2020/06/25/montenegro-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49535_