The introduction of SEPA in Montenegro: what does it mean for the economy?
The Central Bank of Montenegro (CBCG) is actively helping the country's financial institutions integrate into the SEPA system. This is a strategic step that will provide citizens and businesses with faster, cheaper and safer transactions. According to the plans, Montenegrin banks must submit applications for connection by April 2025, when the European Payments Council (EPC) will start reviewing applications.
What it is?
SEPA — is an acronym for Single Euro Payments Area, which is a European Union initiative aimed at simplifying euro transactions between member states and countries that have agreements with the EU. Under SEPA, bank transfers in euros have become fast, secure and inexpensive, thanks to unified standards and procedures. Today, 36 European countries are members of the system, including all EU countries, as well as a number of non-European countries such as Norway and Switzerland.
Significance for the financial system of Montenegro
- Reducing the cost of translations: within SEPA, transfer fees are significantly lower than for standard international transfers.
- Acceleration of transactions: Transfers in euros will take place within one working day.
- Transparency and security: the system complies with the strict EU requirements in the field of financial regulation.
Montenegro's inclusion in the system means that local banks will now be able to send and receive euro payments within one system with minimal costs and delays, opening up new opportunities for businesses, consumers and financial institutions in the country.
One of the main benefits of this connection for Montenegrin banks is the reduction of transaction costs, which is especially important for businesses and individuals who regularly make international transfers. Before joining SEPA, such transfers were often expensive and took a long time. Now, with this system, the process will be faster and more efficient.
For Montenegrin banks, joining the new system also means adapting their IT systems and processes to international standards. CBCG supports local financial institutions in this process, providing them with the necessary guidance and resources for the safe and proper implementation of SEPA.
Preparing banks for integration
In order for local banks to be able to fully operate within the SEPA framework, they must meet a number of technical and organizational requirements. The CBCG, as a regulator, coordinates the process and helps banks adapt to the changes.
One of the main challenges is to implement appropriate security and data exchange standards that will ensure the reliability and confidentiality of all financial transactions. Local banks must adapt their systems to the new requirements and train their staff to work with the new system.
CBCG actively cooperates with banks, consulting them on all issues related to the transition to new standards. This helps to minimize risks related to technical and legal aspects of the transition. The regulator also ensures compatibility of the national payment system of Montenegro with the new international system.
Deputy Head of CBCG Zorica Kalezic stressed, that Montenegro's accession to the single euro payment area is an important step towards the country's European integration. This will not only simplify payments within Europe, but will also increase Montenegro's investment attractiveness.
When will the new system be launched in Montenegro?
Montenegrins are expected to banks will get full access to SEPA 5 2025 October, the. Currently, financial institutions are undergoing technical adaptation of their payment systems. In the future, SEPA is expected to cover not only banks, but also electronic payment services.
The European Payments Council (EPC), the parent body of the Single Euro Payments Area, emphasizes, that the set date leaves Montenegrin banks and payment service providers, as well as SEPA payment system participants in other countries, additional space for technical harmonization, user training and optimization of operational procedures in order to ensure smooth connectivity and provision of services through payment schemes.
Benefits for businesses and citizens
For businesses, Montenegro's connection to SEPA means significant benefits, including:
- Reducing translation costs. Companies making international payments will no longer face high transfer fees, which allows them to significantly reduce operating costs.
- Acceleration of transactionsPayments will be made faster and more efficiently, improving liquidity and business processes for companies.
- Single standard. Companies will be able to use a single platform to send and receive payments in euros, making their operations more convenient and transparent.
Significant improvements are also envisaged for the population. First of all, the simplicity and low cost of transfers between countries included in the new system will become available to individuals, which will have a beneficial effect on transactions abroad. In addition, SEPA will simplify the process of paying for goods and services if they are provided by international companies.
Thus, Montenegro's transition to the new system is a strategic step that will significantly improve the country's financial climate and accelerate its integration into the EU economic space.
