Montenegro is committed to harmonizing with EU standards in adopting the best practices in order to ensure a strong and sustainable financial system, announced the Governor of the Central Bank (CBCG), Irena Radović, at a meeting with the President of the European Central Bank (ECB), Christine Lagarde.
During the meeting at the ECB headquarters in Frankfurt, the importance of continuous cooperation aimed at harmonizing the practices of the central banking of Montenegro with European standards was emphasized.
Radović, as announced by the CBCG, highlighted the significant progress of Montenegro in the modernization of the financial infrastructure, with special emphasis on the recent membership in the Single Euro Payment Area (SEPA) and ongoing preparations for the implementation of the TIPS clone project in cooperation with the Bank of Italy and in accordance with by decision of the Governing Council of the ECB.
She stated that the accession of Montenegro to the SEPA system as the 37th member represents a key milestone that improves the efficiency and resilience of payment systems, while at the same time bringing significant benefits to citizens and the economy through faster, safer and cheaper transactions.
The meeting was an opportunity to consider the broader framework of obligations of Montenegro in the process of accession to the European Union, with a special focus on bank supervision, payment systems and reforms in the field of financial management.
Radović presented the ongoing activities of the Central Bank of Serbia to improve financial and monetary standards, as well as plans for the organizational transformation of the Central Bank of Serbia in order to achieve compatibility with the framework of the European System of Central Banks/Eurosystem.
Radović and Lagarde also exchanged views on key European initiatives, including the development of the digital euro and strategies for managing financial risks associated with climate change.
"The ECB remains committed to cooperation with the central banks of candidate countries for EU membership, supporting them, within the framework of their competences, in the process of EU accession," said Lagarde.
Radović said that they greatly appreciate the cooperation with the ECB on their path of integration into the European financial space.
"Today's talks confirmed our commitment to the modernization and integration of the Montenegrin financial system into the European framework, which represents an important part of the Montenegrin European agenda," added Radović.
This meeting is part of a regular dialogue between the CBCG and the ECB, which emphasizes Montenegro's resolute commitment to harmonizing its financial system with European norms and contributes to the stability and resilience of the wider European financial space.
The previous day, the CBCG delegation presented the activities and achievements of the CBCG at the meeting of the ECB's Market Infrastructure and Payments Committee (MIPC), at the invitation of the ECB's Director General for Market Infrastructure and Payments and the chairman of this body, Ulrich Bindsajl.
Radović presented the current state of the payment system in Montenegro to the members of the ECB MIPC - senior officials of the central banks of the Eurosystem and the European System of Central Banks (ESCB).
She emphasized the importance of Montenegro's recent admission to SEPA, especially in the context of the challenges associated with the high costs of cross-border payments.
"Taking into account the high level of remittances from the countries of the SEPA area, estimates are that, based on the reduction of remittance costs, Montenegro could, in the medium term, achieve savings of over 0,5 percent of gross domestic product (GDP) per year," she stated. is Radovic.
She also presented the plans of the CBCG regarding the modernization of national payment systems, including the development of the instant payment system, i.e. the accession of Montenegro to the TIPS (Target Instant Payment Settlement) clone project.
This project, which was approved by the European Central Bank and will be identical to the EU's TIPS payment system, will further improve the efficiency of the Montenegrin financial system and rank Montenegro among the countries that have an EU-compatible, efficient and inclusive payment infrastructure.
The CBCG delegation continues its stay in Frankfurt with a visit to the Bundesbank.
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