Board of Association of banks and financial institutions of the Chamber of Trade of Montenegro said today that collection of debts was the greatest problem of Montenegrin banks and it appealed on competent state institutions to make it more efficient. Members of the Board were of the opinion that Montenegrin banks had no adequate method to secure granted credits, so it was necessary to establish a special institution and make granting and return of credits more transparent. Director of the Central Bank of Montenegro, Milojica Dakic, said that business banks allotted 48.6 million EUR for obligatory reserve, which is 80 percents of the mean of their 15-day deposits. “Apart from this sum, with purchase of state bonds the banks allotted 1.38 million EUR for obligatory reserve. This obligation of 787,000 EUR has not been fulfilled by two business banks,” said Dakic. He estimated that further reduction of obligatory reserve, which was announced, would enhance business credits. “Up to now, banks granted credits for business from their own capital and with time-deposit savings, but one part of the money was not placed because of the poor quality of credit beneficiaries. Obligatory reserve is adjusted with international standards and we have to apply it even when business banks deem it unacceptable,” said Dakic. He informed entrepreneurs of results of the conversion of European currencies into Euro, which the Central Bank of Montenegro estimated as successful. He said that the total of about 158 million Euro was converted, of which 46.2 million in business banks and 43 million in the Central Bank. Dakic also said that the Central Bank prepared solution for the old private savings in foreign currency and was finishing the adjustment of the foreign debt with the National Bank of Yugoslavia. “It is not wise to state any data on foreign debt as long as the process of adjustment lasts. It would be enough if I said we started bilateral talks with states that granted us the loans on the basis of individual credits,” said Dakic. He said that the Central Bank would permit foundation of several but it would also close several Montenegrin banks, which was inevitable in market economy. Members of the Board were of the opinion that the state should transform one part of its debt towards business banks into obligatory reserve, and that it should give up transformation of debts of companies into shares, because it reduced their risk capital.