Central bank of Montenegro (CBCG) will change and supplement the Law on banks on the basis of which it could in future control working of off shore banks, was announced by the CBCG director#s deputy Goran Knezevic. "Montenegrin law on companies that work under specific conditions passed in 1996 guarantees to off shore banks business incentives that must not be worsened for fifteen years after their foundation. CBCG will change and supplement the Law on banks and on the basis of it will be able to control working of these banks. We should also re-discuss the constitutionality of the clause on working under unchanged conditions for fifteen years", aid Knezevic. At today#s press conference he said that imposing control over off shore banks, initiated by CBCG in March last year, was mechanism that would provide regaining of trust in banks. "Control should provide permanent sources of money and intensification of investments and it demands additional intensifying of its criteria. It can only be successful if followed by the appropriate macroeconomic policy, laws on banks and on system economic ambient, as well as by technical and operational mechanisms and payment systems", explained Knezevic. He said that imposing of control was aiming towards secure and stabile functioning of business banks and it meant that they should have sufficient capital and reserves for providing deposits and credits. Knezevic considers that Montenegro is deficient in the institutions in charge of deposit insuring adding that CBCG plans to initiate controlling information technologies and connection of bank softwares. "During this year CBCG will prepare new sub legal acts and directions for receivership, bankruptcy and liquidation of banks. By number of special activities it will continue working on licensing the banks that till the end of February should harmonize their working with the Law on Banks passed in November last year", said Knezevic. He announced possibility of bankruptcy and liquidation of number of Montenegrin banks but he did not want to revel their names estimating that it could harm them. He said that Atlas mont bank and group of American non-governmental organizations submitted the demand for obtaining the license. Knezevic claims that macroeconomic risk of working in Montenegro cannot be precisely established but that it is reduced since introduction of DM. "During this year it is to be even more reduced due to introduction of the joint European currency", stated Knezevic. He said that depositors of banks in which the bankruptcy procedure might be opened would be allowed to regain their deposit under the same conditions. Deposit will be paid from bankruptcy mass. "On day of going bankrupt all bank deposits will be frozen and they will be paid from the bankruptcy mass. It means that payment lists will be formed. Insured deposits and debts a banks has with CBCG will have to be paid first and only after that depositors who deposited less then 5000 DM will be given their money. Bigger deposits and the stockholders of a bank will be paid last", explained Knezevic. According to him depositors are guaranteed secure disbursement of their deposits but no one is to have advantage since a trustee in bankruptcy can check all the disbursement made during the last three years and annul them. Knezevic considers that the plan on receivership in #Montenegro bank#, which has been applied for the last 11 months, will be realized up to a great extent and it should provide conditions for bankruptcy. "As far as future of #Montenegro bank# is concerned I am an optimist with experience. Bankruptcy does not have to mean liquidation. It can also be its recovery".