Resource information
This report assesses Montenegro's
public and external debt sustainability under alternative
scenarios. The baseline scenario assumes continued
implementation of a macroeconomic stabilization and
structural reform program, while the low case scenario
describes the alternative of a sluggish growth environment
due to policy slippage/weak reform. In addition, other
sensitivity tests are conducted in order to highlight the
vulnerability of the baseline case to specific shocks. The
report concludes that Montenegro's public debt would be
highly sustainable if economic reforms continue at their
current pace, and the 2007 fiscal policy is maintained over
the coming years.
