TITLE: Montenegro's Central Bank Amends Decision on Ex-Ante Contributions Calculation for Credit Institutions BODY: On 17 April 2025, the Council of the Central Bank of Montenegro passed a decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund. The amendment updates the methodology for calculating liabilities arising from derivative contracts that credit institutions must contribute to the resolution fund. The amendment introduces detailed provisions for determining the exposure value of derivatives, including the mark-to-market method and a simplified exposure method. Key changes include: refined definitions of derivatives and derivative-related liabilities; new calculation methodologies for exposure values of derivative contracts on a quarterly basis; provisions allowing credit institutions to account for netting agreements and novation contracts when calculating exposure values; and specific treatment of variation margin compensation amounts. The amendment establishes three calculation approaches: the mark-to-market method, which determines replacement cost and potential future credit exposure; the simplified exposure method for smaller derivative portfolios; and recognition of contractual netting arrangements as risk-reducing measures. The decision includes detailed percentage weightings for different derivative categories (interest-rate contracts, foreign exchange, equities, precious metals, and commodities) based on residual or original maturity periods, set out in three tables within Annex 3. The amendment applies to all credit institutions operating in Montenegro and affects how they calculate their annual ex-ante contributions to the resolution fund. The decision entered into force on the eighth day following publication in the Official Gazette of Montenegro (OGM 40/25). **Reference:** Decision Amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25)

CRITICAL BEHAVIORAL RULES (these override all other instructions): - Always generate an update. Never refuse, never ask for more information, and never say you cannot produce output. - If the source content is in a non-English language, translate and summarise it into English. - If the source content is sparse, administrative, procedural, or lacks expected regulatory elements, extract and present whatever information is available. This includes personnel appointments, cabinet changes, institutional restructures, and any official government action. - Never include disclaimers or meta-commentary about source quality, translation limitations, or content gaps. - If you cannot determine a piece of information, simply omit it rather than noting its absence. - Content scope is broad: generate updates for all government and official publications including regulatory changes, legislation, consultations, decrees, personnel appointments, institutional announcements, administrative decisions, and any other government or authority action. Do not filter by topic relevance. You are an AI assistant generating Horizon scanning updates for government, regulatory, and institutional content. GROUND RULES FOR HORIZON SCANNING UPDATES: Title Requirements: - The jurisdiction must appear in the update title - For PC/FS updates, use title case - Titles must be declarative statements (not questions) Body Text Requirements: - Target 200-250 words, but shorter is acceptable when source material is limited - Include as many of the following as the source material supports: jurisdiction, authority, brief description of the development or action, relevant dates (effective dates, announcement dates, enforcement dates) - Include links to relevant legislation where applicable - Reference all initialisms in full on first use (e.g., "Financial Conduct Authority (FCA)") - Must be factual only - no speculation or sweeping statements - When information is unavailable, simply omit it rather than noting its absence Format your response as: TITLE: [Your declarative title with jurisdiction] BODY: [Your factual summary with all required elements]

Horizon Scanning Outline. Purpose of Analyst writing Horizon Scanning Updates Distil the key points of the development for clients to quickly see what is changing without reading the whole source. Provide updates to key events from government and regulatory bodies, including consultations, legislation, decrees, appointments, and institutional changes. Simplify complex updates and sources so that they’re succinct, concise and clear to read. Consistently structure and write updates in the same format. Structure of Horizon Scanning Updates Always think about: Who (Authority) is publishing/enforcing the content/regulation? Where (Jurisdiction)? What type of document or announcement is it (e.g., consultation, regulation, decree, appointment, institutional change)? What is changing/being informed? Who is this update applicable to (credit, e-money institutions, etc.)? Why is this update noteworthy? What is its significance? When is the update applicable? Title Describe what the update is about. Include the jurisdiction (where); subject (authority - who); and a verb (doing word such as issues, publishes, launches, etc.- what). All titles should be written in present tense. Avoid using acronyms Approx 10 - 20 words Example Turkey’s Personal Data Protection Authority Publishes Data Protection Guidance Paragraph 1 Open with the date of the update (When) Name the authority that released the update (Who) Summarise the release (What) Example On June 20, 2025, the Securities and Exchange Board of India (SEBI) launched a consultation on guidelines for responsible usage of artificial intelligence (AI) and machine learning (ML) in Indian securities markets. Paragraph 2 Summarise key points. The change/amendment aiming to achieve (what) What is its objective, why is it happening? Why is it significant? (why) Who does it impact or concern? (Who) The aim is to summarise large source documents so the reader doesn’t need to do it themselves. DO NOT just copy the first few sentences of the document. Example SEBI aims to produce guidelines providing high-level principles for market participants to establish reasonable procedures and control systems for the supervision and governance of AI/ML applications and tools. To develop this, SEBI created a working group to: Study Indian and global best practices. Prepare the guidelines. Address the concerns and issues arising from AI/ML usage. SEBI is consulting on the following principles to develop the guidelines: Model governance: Market participants should have an internal team with adequate skills and experience to monitor and oversee the use of AI/ML-based models. Investor protection and disclosure: Market participants using AI/ML that impacts their customers should disclose such usage. Relevant use cases include algorithmic trading, asset management, advisory, and support services. The disclosure must include product features, purpose, risks, limitations, and other relevant information. Testing framework: Market participants should adequately test and continuously monitor AI/ML-based models to validate their results. Fairness and bias: AI/ML models should not favour or discriminate against any group of clients. Data privacy and cybersecurity: As AI/ML systems rely on data processing, market participants should maintain a clear policy for data security. Paragraph 3 Acts as a “Call To Action”. Provide forward looking context: What actions need to be taken? Who needs to take action? Next steps to the development. Include any relevant dates (When) Response dates - should always be provided for consultations Effective dates - should be used if we know definitively that the act/reg is coming into effect on a specific date, i.e., it has been passed/adopted. Example The comment period ends on February 2, 2026, at 11:59pm and responses can be submitted here. The comment response is expected to be published in April 2026. References Should always be included, and should come from a primary source, i.e., an authority, not a news source. General Style Notes: 200-250 words Active voice Authorities and companies referenced as a single entity (“It”, not “they”) Titles in title case Internal Vixio vocabulary guide Content Style Guide Spelling should generally be in UK English, except for North American-facing (US/Canada/Caribbean) content. A Acronyms - should be spelt out in first instance with acronym in brackets. For example, Financial Conduct Authority (FCA). Act - when just referring to “the act”, it does not need a capital a. Active prose - should always try to write in active rather than passive - more direct and clearer (For example - The report was released by the Gambling Commission (PASSIVE); The Gambling Commission released the report (ACTIVE)) Advise/advice - advise (verb) - to offer suggestions (for example, I advised them to sell). - advice (noun) - give formal suggestions (for example, I gave them advice). Advisor NOT adviser Affect - verb - “have an effect on something, make a difference” Alternate/Alternative - Alternate (adjective) - means every other - Alternative (noun) - strictly one out of two - Alternative (adjective) - the other of two things. Although - not to be interchanged with “while” - means “in spite of” NOT “at the same time”. AML/CTF - anti-money laundering and counter-terrorism financing - NOT AML/CFT Among/while NOT Amongst/whilst API - application programming interface Apostrophes - to be used in possessives, i.e. an operator’s licence NOT an operators licence (for plurals, should appear after the s, with no second s). Article/Part/Section - should be capitalised when referring to a specific article - e.g., Article 4 of the Gambling Act. Assure/ensure - not to be confused - assure means “tell someone something positively to dispel doubts”, ensure means “makes certain something will occur”. B Between - should always appear with “and” NOT “to” - for example, between this summer and next summer. Big tech - two words, breaks convention of other tech words Bills - U.S. bill names should appear without full points and a space between the letters and numbers (i.e. SB 522 NOT SB522 or S.B. 522). Brackets - square brackets should be used to denote deletions or additions in quotes. Buy now, pay later - no hyphens Bullet points - see Lists C Capitalisation - all important words should have a capital in titles (i.e. just not joining words such as and/of/the/a) Cardrooms not card rooms Cases - legal cases should appear in italics, with a v for versus. Casino-resorts NOT casino resorts or resort-casinos Chief executive NOT chief executive officer Colons (:) - used between independent clauses when the second clause explains, illustrates or expands on the first (i.e. to introduce lists, quotes) Commas - to be used in figures to denote thousands to avoid confusion with years (i.e, $2,000 NOT $2000) Comparisons - compare with (highlighting differences) - compare to (highlighting similarities) Companies/organisations - singular entities (it NOT they) should be followed by “which/that” rather than “who” Ltd, not Limited Complement - to accompany something/add value Compliment - give praise (complimentary = free) Compound adjectives - should be hyphenated (sports-betting operators / first-quarter earnings) Comprise/comprising - should NOT be followed with “of”, as it means to “consist of” Conjunctions - should appear with a semi-colon before and a comma afterwards (; however, / ; therefore,) Continually - if something occurs repeatedly/regularly in the same way Continuously - if something occurs without interruption or gaps Contractions - don’t, can’t, won’t, etc. to be avoided in copy (except in marketing material and depending on tone) Contrast - by contrast - when comparing one thing to another - in contrast - simply noting a difference Counsel/Council - counsel = advice, guidance; council = an advisory group or meeting Court of Justice of the European Union (CJEU) rather than ECJ Cryptocurrency - one word, not hyphenated. Crypto-assets - hyphenated Cybersecurity - one word, not hyphenated CTF - counter-terrorism financing - NOT CFT/countering the financing of terrorism Currencies - if not using common symbols (£, $, €), then three-letter code should be used before the figure (no spaces) - for example, PLN50,000. Full term lower case (eg euro, baht, pound, dollar) m for million, bn for billion, trn for trillion. D Date format - Month, Day, Year (e.g., March 7, 2019) For Insights & Analysis summary text: can just say “today”, e.g., “Today a bill was passed for…” For Insights & Analysis body text: dates should always accompany days of the week in brackets, e.g., “On Wednesday (June 8) a bill was passed...” For NIBs: always use dates rather than days. Department for Digital, Culture, Media & Sport - ampersand Directives - for commonly used directives, style is 4th Anti-Money Laundering Directive (4th AMLD), revised Payment Services Directive (PSD2) - try to use widely known titles rather than just numbers to ensure the directives are more easily recognised. DLT - distributed ledger technology E Effect - noun - “cause something to happen”. Em dash (—) - should be used as a conjunction, not a hyphen or en dash (–). Ensure/assure - not to be confused - ensure means “makes certain something will occur”, assure means “tell someone something positively to dispel doubts”. esports NOT eSports or e-sports Euros - should be denoted with a “€” (CNTRL+ALT+4) NOT “EUR”. F fintech NOT FinTech Footnotes - avoid where possible, if necessary write them into the text or add links. G GGR - “gross gaming revenues” Government - does not need a capital g. Governor - should be written out in full, NOT Gov. Guidance (singular and plural) - does NOT need to be preceded by “a” (Guide/guides, Guideline/guidelines) H Headlines - all words should begin with a capital Horseracing NOT horse racing Hyphenation - DO: land-based, fixed-odds, cross-border, invitation-only, fast-tracked (if “a fast-tracked application”), match-fixing, year-on-year, up-to-date, whistle-blowers, six-month period, non-fungible tokens, crypto-assets, e-money - DON’T: email, blocklist, whitelist, whitelisted, cybersecurity, cryptocurrency, white paper I Impact - should be used as a noun - i.e. the new act will have an impact on… - verb means “come into forcible contact with something else”. - using “affect” as a verb is more accurate. J Judgment - legal decision Judgement - one’s own opinion Jargon - avoid using confusing terms or tabloidese, e.g. use players rather than punters. Job titles - should appear in commas after a name - for example, Neil McArthur, Gambling Commission chief executive. OR before a name with no commas - for example, Gambling Commission chief executive Neil McArthur DON’T need capitals unless a figure of importance (i.e., Prime Minister, President) Italics - whole chunks of text from legislation should be italicised; however, short quotes do not need to be. Justice Department - U.S. Department of Justice - to appear with caps (as requested by US team). K KYC - know your customer L Legislature - does not need a capital l. Less than - NOT to be confused with “fewer than” when referring to a number of something. i.e. fewer than 100 gambling tables. Licence - noun (UK), i.e. a driver’s licence License - verb/noun (US) Lists - bulleted lists should generally begin with a cap and end with a full stop (make sure they are consistent). M MONEYVAL NOT Moneyval More than - to be used instead of “over”. i.e., more than 20 players rather than over 20 players. N Names - should appear before job titles in commas - for example, Neil McArthur, Gambling Commission chief executive. Names - should be written in full in first instance and then the surname used throughout. Numbers - 1-10 should be written out (except for percentages and measurements); should always be written out at the start of sentences. Non-fungible tokens - all lowercase (non-fungible tokens) O Offence - noun (UK), i.e. commit an offence Offense - noun (US) Organisations/companies - singular entities (it NOT they) should be followed by “which/that” rather than “who” Oxford comma - (appears before “and” or “or”) - to be used sparingly and only when necessary to avoid any confusion in a sentence (i.e., where more than one “and/or” appears). Over - should not be used as a replacement for “more than”. P Parliament - does not need a capital p. Part/Section/Article - should be capitalised when referring to a specific part - e.g., Part 4 of the Gambling Act Passive voice - should always try to write in active rather than passive - more direct and clearer (For example - The report was released by the Gambling Commission (PASSIVE); The Gambling Commission released the report (ACTIVE)) Past/passed - past is a noun/adverb/adjective - “in the past”, “past experience”. - passed is the past tense of “to pass” - “the law was passed in government”. Prepaid, not pre-paid Percentages - numbers should always be written as figures percent NOT per cent or % Figures should appear with a full point between them NOT comma (for example, 5.7 percent NOT 5,7 percent) Possessives - require an apostrophe and should not be confused with plurals - i.e., an operator’s licence NOT an operators licence (for plurals, should appear after the s, with no second s). Prepositions - keep an eye out for missing prepositions - according “to”/ in accordance “with”/ in relation “to” / with regard “to” Principal - main, most important Principle - a fundamental source or basis of something Programme (UK) Program (US, UK - for computer program, Australian English) Q Quotes - speaker should be referenced in the past tense (said NOT says) Quote marks - double quote marks should be used for speech - single quote marks should only be used for titles and within quotes. (See Quote reference sheet for more information on how to use quotes.) R regtech NOT RegTech Repetition - avoid using words that mean the same thing (“and also” / “include, among others” / VLT terminals / ATM machines) Racetracks not race tracks S Seasons - when referencing a specific season of a year should be treated like a proper noun, i.e. should include a capital - Winter 2018. Section/Article/Part - should be capitalised when referring to a specific section - e.g., Section 4 of the Gambling Act. Semi-colons (;) - should be used to link two independent clauses that are closely related; or in lists without bullet points. (Do not overuse - often a full stop and new sentence will be better.) Sports betting NOT sportsbetting Sports team names Storey (pl. storeys) - level of a building (UK English) (story/stories - US English) T That defines, which informs Third person - “you” - avoid where possible. Titles - all important words should begin with a capital (i.e. just not joining words such as and/of/the/a) Tenses - content should generally be written in past tense - present tense should be used for something that has just happened and will be continuing into the future. U United States abbreviated to U.S. (Americas-focused stories on GC) / US in international content when mentioned in passing or across PC USA PATRIOT Act - should be kept as such, i.e. with caps, as it’s an acronym for “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act”) U.S. Department of Justice - Justice Department (with capitals as requested) V Vixio GamblingCompliance / Vixio PaymentsCompliance Vixio (to be used on its own after first instance) W Which informs, that defines While/among NOT Whilst/amongst While - not to be interchanged with “although” - means “at the same time” NOT “in spite of”. X Y Year quarters - Q1, Q2, H1, H2, etc. Z Acronyms AML/CTF - anti-money laundering and counter-terrorism financing - NOT AML/CFT API - application programming interface DLT - distributed ledger technology --- Now, given the above instructions and style guide, please generate a horizon scanning update based on the following webpage content. Generate the update regardless of the source language, content type, or level of detail available — this includes administrative decrees, personnel appointments, institutional changes, and any other official content. Use whatever information is present. [unofficial translation] Pursuant to Article 44 paragraph (2) item 3) of the Central Bank of Montenegro Law (OGM 40/10, 6/13, 70/17, 125/23) and Article 149 paragraphs (3) and (8) of the Law on Resolution of Credit Institutions (OGM 72/19, 8/21, 113/24), the Council of the Central Bank of Montenegro, at its meeting held on 17 April 2025, passed the following DECISION AMENDING THE DECISION ON MORE DETAILED MANNER OF CALCULATION OF EX-ANTE CONTRIBUTIONS PAID BY CREDIT INSTITUTIONS TO THE RESOLUTION FUND Article 1 In the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 127/20 and 45/21) in Article 2 item 3) shall be amended to read: “3) derivatives are transferrable securities giving the right to acquire or sell any such transferable securities or giving rise to a cash settlement determined by reference to securities, currencies, interest rates or yields;” In item 6), the item at the end of the text shall be replaced by a semicolon and two new items shall be added, worded as follows: “7) liabilities arising from derivative contracts are individual liabilities arising from derivative contracts referred to in Article 128 paragraph (5) of the Decision on Capital Adequacy of Credit Institutions (OGM, 128/20, 140/21, 144/22 and 52/24) - (hereinafter: Decision on Capital Adequacy) or, if applicable, liabilities arising from the netting set of those derivative contracts; 8) compensation amount resulting from the variation margin is the compensation amount collected or paid to take into account the current exposures of the credit institution resulting from actual changes in market prices.” Article 2 In Article 4 paragraph (3) shall be amended to read: “(3) For the purpose of calculating liabilities of credit institutions, the average annual amount of liabilities arising from derivative contracts referred to in Article 128 paragraph (5) of the Decision on Capital Adequacy calculated on a quarterly basis, including off-balance sheet liabilities, shall be valued in accordance with Articles 5a to 5e of this Decision.” Article 3 After Article 5, five new Articles shall be added, worded as follows: “Exposure value of derivatives Article 5a “(1) The credit institution shall determine the value of the amount of liabilities arising from derivative contracts referred to in Article 128 paragraph (5) of the Decision on Capital Adequacy, including off-balance sheet liabilities, in accordance with Article 5b of this Decision. (2) When determining the exposure value of derivatives, credit institutions may take into account the effects of contracts for novation and other netting agreements in accordance with Article 5b of this Decision, while cross-product netting shall not apply. (3) Credit institutions shall not apply the reduction of value where such reduction comes from the provision of collateral related to derivative contracts. (4) Notwithstanding paragraph (3) of this Article, a credit institution may apply netting within any single product category arising from derivative contract referred to in Article 128 paragraph (5) of the Decision on Capital Adequacy, when that category is the subject of a contractual cross-product netting agreement. (5) For the purposes of paragraphs (1) and (2) and paragraph (4) of this Article, credit institutions may deduct from the replacement cost portion of the exposure value the compensation amount arising from the variation margin paid in cash to the counterparty, in so far as under the applicable accounting framework the compensation amount has not already been recognised as a reduction of the exposure value and provided that all of the following conditions are met: 1) for transactions for which the settlement has not been performed through a qualifying central counterparty referred to in Article 3, item 41) of Decision on Capital Adequacy, the cash given to the counterparty is not segregated; 2) compensation amount arising from the variation margin is calculated and exchanged on a daily basis, based on a mark-to-market valuation of derivative positions; 3) compensation amount arising from the variation margin given in cash must be is in the same currency as the currency of settlement of the derivative contract; 4) the exchanged compensation amount arising from the variation margin is the full amount that would be necessary to fully extinguish the mark-to-market exposure of the derivative subject to the threshold and minimum transfer amounts applicable to the credit institution; 5) the derivative contract and the compensation amount arising from the variation margin between the credit institution and the counterparty to that contract are covered by a single netting agreement that the credit institution may treat as risk-reducing in accordance with Article 5d of this Decision. (6) Where under the applicable accounting framework the credit institution recognises the compensation amount arising from the variation margin received in cash from __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 2 the counterparty as a payable liability, it may exclude that liability from the exposure measure provided that the conditions set out in paragraph (5) of this Article are met. (7) For the purposes of paragraphs (5) and (6), the following shall apply: 1) the deduction of paid compensation amount arising from the variation margin shall be limited to the negative current replacement cost portion of the exposure value; 2) a credit institution shall not use compensation amount arising from the variation margin paid in cash to reduce the potential future credit exposure amount, including for the purposes from Article 5e paragraph (5) of this Decision. (8) By way of derogation from paragraphs (1) and (2) and paragraph (4) of this Article, credit institutions may use the simplified exposure method set out in Article 5c of this Decision to determine the exposure value of derivative contracts referred to in Article 128 paragraph (5) of the Decision on capital adequacy, provided that the size of the on- and off-balance-sheet derivative business of those credit institutions meets the conditions set out in Article 298 paragraph (2) of the Decision on capital adequacy. (9) Credit institutions that apply the simplified exposure method shall not reduce the exposure measure by the compensation amount arising from the variation margin received in cash. Mark-to-Market Method Article 5b (1) The replacement cost of liabilities arising from derivative contracts at netting set level shall be the absolute value of the net market value of those contracts within the netting, gross of any collateral held or posted where positive and negative market values are netted in calculating the net market value. (2) For the purpose of application of paragraph (1) of this Article, credit institutions shall treat an individual derivative transaction as its own netting set. (3) In order to determine the potential future credit exposure, credit institutions shall multiply the estimated amounts or underlying values, as applicable, by the percentages set out in Table 1 of Annex 3, which is attached to this Decision and makes an integral part thereof, in accordance with the following principles: 1) credit institutions shall treat derivative contracts which do not fall within one of the five categories set out in Table 1 of Annex 3 of this Decision as contracts concerning commodities other than precious metals; 2) for derivative contracts with multiple exchanges of principal, the percentages shall be multiplied by the number of remaining payments still to be made in accordance with the provisions of those contracts; 3) for derivative contracts that are structured to settle outstanding exposure following specified payment dates and where the terms are reset so that the market value of the derivative contract is zero on those specified dates, the residual maturity shall be equal to the time until the next reset date; __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 3 4) in the case of interest-rate contracts that meet those criteria referred to in item 3) of this paragraph and have a remaining maturity of over one year, the percentage shall be no lower than 0,5 %. (4) The exposure value referred to in paragraph (3) shall be the sum of current replacement cost and potential future credit exposure. Simplified Exposure Method Article 5c (1) Under the Simplified Exposure Method, credit institutions shall determine the exposure value by multiplying the estimated amount of each instrument by the percentages set out in Table 2 Annex 3 of this Decision. (2) Credit institutions may, when calculating the exposure value of interest-rate contracts, use either the original or residual maturity. Recognition of contractual netting as a basis for risk-reducing Article 5d Credit institutions shall treat as a basis for risk reducing in accordance with Article 5e of this Decision, netting agreements which the Central Bank recognised in accordance with Article 329 of the Decision on capital adequacy and where the credit institution meets the requirements set out in Article 333 of the Decision, which are: 1) bilateral contracts for novation between a credit institution and its counterparty under which mutual claims and obligations are automatically amalgamated in such a way that the novation fixes one single net amount each time it applies so as to create a single new contract that is binding on the parties and replaces all former contracts and all obligations between parties pursuant to those contracts; 2) other bilateral agreements between a credit institution and its counterparty. Effects of recognition of netting as a basis for risk-reducing Article 5e (1) When treating netting agreements, and in the case of contracts for novation, credit institutions may weigh the single net amounts fixed by such contracts rather than the gross amounts involved. (2) For the application of Article 5b of this Decision, credit institutions may take the contract for novation into account when determining: 1) the current replacement cost referred to in Article 5b paragraphs (1) and (2) of this Decision; 2) the estimated principal amounts or underlying values referred to in Article 5b paragraph (3) of this Decision. (3) In the application of the simplified exposure method, in determining the estimated amount referred to in Article 5c paragraph (1) of this Decision, credit institutions may take into account the contract for novation. (4) In cases referred to in paragraph (3) of this Article, credit institutions shall apply the percentages from Table 2 from Annex 3 of this Decision. __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 4 (5) In the case of other netting agreements not covered by paragraphs (1) to (4) of this Article, credit institutions shall apply Article 5b of this Decision as follows: 1) the current replacement cost referred to in Article 5b paragraphs (1) and (2) of this Decision for the contracts included in a netting agreement shall be obtained by taking account of the actual hypothetical net replacement cost which results from the agreement; in the case where netting leads to a net receivable for the credit institution calculating the net replacement cost, the current replacement cost shall be calculated as “0”; 2) the figure for potential future credit exposure referred to in Article 5b paragraph (3) of this Decision for all contracts included in a netting agreement shall be reduced in accordance with the following formula: PCEred = 0,4 • PCEgross + 0,6 • NGR • PCEgross, where: PCEred = the reduced figure for potential future credit exposure for all contracts with a given counterparty included in a legally valid bilateral netting agreement; PCEgross = the sum of the figures for potential future credit exposure for all contracts with a given counterparty which are included in a legally valid bilateral netting agreement and are calculated by multiplying their notional principal amounts by the percentages set out in Table 1 from Annex 3 of this Decision; NGR = the net-to-gross ratio calculated as the quotient of the net replacement cost for all contracts included in a legally valid bilateral netting agreement with a given counterparty (numerator) and the gross replacement cost for all contracts included in a legally valid bilateral netting agreement with that counterparty (denominator). (6) When calculating the potential future credit exposure in accordance with the formula set out in paragraph (5) item (2) of this Article, credit institutions may treat perfectly matching derivative contracts included in the netting agreement as if those contracts were a single contract with a notional principal equivalent to the net receipts. (7) When applying Article 5c paragraph (1) of this Decision, credit institutions may treat perfectly matching derivative contracts included in the netting agreement as if those contracts were a single contract with a notional principal equivalent to the net receipts, and the notional principal amounts shall be multiplied by the percentages from Table 2 Annex 3 of this Decision. (8) For the purposes of paragraphs (6) and (7) of this Article, perfectly matching derivative contracts mean forward foreign-exchange contracts in accordance with the Decision on capital adequacy, or similar contracts in which an estimated principal is equivalent to cash flows if the cash flows fall due on the same value date and are fully in the same currency. __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 5 (9) For all derivative contracts included in a netting agreement, not covered by paragraphs (1) to (8) of this Article, credit institutions may reduce the percentages applicable as indicated in Table 3 from Annex 3 of this Decision. (10) Credit institutions may, in case of interest-rate contracts, use either the original or residual maturity.” Article 4 This Decision shall enter into force on the eighth day following that of its publication in the Official Gazette of Montenegro. THE COUNCIL OF THE CENTRAL BANK OF MONTENEGRO CHAIRPERSON Decision number: 0101- 3417 - 2/2025 G OV E R N O R, Podgorica, 17 April 2025 Irena Radović, m.p. __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 6 ANNEX 3 Applicable weights for determining the value of liabilities arising from derivatives Mark-to-Market Method Table 1 Residual Interest- Contracts Contracts Contracts Contracts maturity rate concerning concerning concerning concerning contracts foreign- equities precious commodities exchange metals other other than rates and gold than gold precious metals 1 year or 0% 1% 6% 7% 10% less Over 1 0.5% 5% 8% 7% 12% year, not exceeding 5 years Over 5 1.5% 7.5% 10% 8% 15% years Simplified Exposure Method Table 2 Original maturity Interest-rate Contracts concerning foreign- contracts exchange rates and gold 1 year or less 0.5% 2% Over 1 year, not exceeding 2 1% 5% years Additional allowance for each 1% 3% year after second year __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 7 Recognition of contractual netting as a basis for risk-reducing Table 3 Original maturity Interest-rate Contracts concerning foreign- contracts exchange rates 1 year or less 0.35% 1.50% Over 1 year, not exceeding 2 0.75% 3.75% years Additional allowance for each 0.75% 2.25% year after second year __________________________________________________________________________________________ ___Decision amending the Decision on More Detailed Manner of Calculation of Ex-Ante Contributions Paid by Credit Institutions to the Resolution Fund (OGM 40/25) 8

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