The implementation of the SEPA and TIPS systems and regulatory reforms accelerate Montenegro's integration into the European Union (EU) and strengthen competitiveness, said the Governor of the Central Bank of Montenegro (CBCG), Irena Radović.
As announced by the Central Bank of Montenegro, Radović participated in the Economic and Financial Dialogue (EFD) with the EU in Brussels.
It is stated that this year's dialogue brought together high-ranking officials and representatives of EU partner countries, the European Commission (EC) and the European Central Bank (ECB), to exchange views on key reform agendas and economic alignment with the EU.
"The participation of the Central Bank of Montenegro at today's high-level EFD in Brussels is a confirmation of our strong commitment to European integration and economic convergence with the EU," said Radović.
She emphasized that they particularly appreciate the constructive dialogue with the EC, ECB and other partners, as well as the support they receive through joint recommendations and technical cooperation.
"Such a platform enables policy harmonization and accelerates reform processes in areas of key importance for monetary and financial stability," Radović pointed out.
As stated in the statement, the meeting discussed the Joint Conclusions with EC recommendations, which identify reform priorities aimed at strengthening macroeconomic stability, improving competitiveness, and accelerating the process of economic convergence with the EU.
Radović, in her capacity as governor of a candidate country that uses the euro without formal membership in the Eurozone, highlighted the active efforts of the Montenegrin authorities to ensure that Montenegro simultaneously responds to external shocks and accelerates convergence with the EU.
"In the current geopolitical context, euroization brings stability and predictability, which are key advantages for investments in times of global fragmentation," Radović stated.
She presented the concrete steps that the Central Bank of Montenegro is taking to modernize the financial sector and integrate Montenegro into the European financial ecosystem well in advance of formal EU membership.
"We have achieved one of the most important goals - Montenegro's accession to the SEPA zone in November last year. Preparations for the full integration of our banking sector are in full swing so that the first SEPA transactions can begin as soon as possible, by October this year," said Radović.
According to her, online clearing in accordance with the ISO 19 standard will begin on May 20022th, while the launch of the national instant payment system through the European TIPS Clone is expected in July next year.
Reforms aimed at the development of cashless payments and digital infrastructure, as Radović pointed out, significantly contribute to greater competitiveness, faster flow of capital, and better inclusion of Montenegrin citizens and the economy in modern financial flows.
Radović said that, according to the Central Bank of Montenegro's internal assessment, SEPA and instant payments could bring annual benefits of around EUR 160 million, which represents 2,3% of GDP, with a visible contribution to improving living standards and strengthening the competitiveness of the Montenegrin economy.
"It is expected that these effects will also help reduce the income gap with the EU by 11 percentage points, or increase per capita income by an additional 2.538 euros in the next ten years, just thanks to the implementation of the SEPA and TIPS systems," said Radović.
As she added, the Central Bank of Montenegro remains committed to further strengthening the regulatory and supervisory framework, modernizing the payment system, and full compliance with the EU acquis in the field of financial services.
As stated in the statement, Radović, during her stay in Brussels, spoke with the European Parliament's (EP) special rapporteur for Montenegro, Marjan Šarec.
"During the meeting, the Central Bank of Montenegro's determination was emphasized to, within its competence, intensively contribute to addressing key economic challenges and accelerating the reform process, with the aim of further strengthening Montenegro's European perspective," the statement said.
It is added that the CBCG delegation also met with Valentina Superti, Director for the Western Balkans in the Directorate-General for Enlargement and Eastern Neighbourhood (DG ENEST), and Adela Marsulo, representative of the Cabinet of European Commissioner for Enlargement Marta Kos.
"The meeting discussed the main priorities of the Central Bank of Montenegro in the field of European integration, including regulatory harmonization, institutional transformation and the effects of modernizing the Montenegrin financial system from the perspective of contributing to economic convergence," the statement said.
As it is added, special attention was paid to preparing the Central Bank of Montenegro for future membership in the European System of Central Banks (ESCB).
The Central Bank of Montenegro pointed out that representatives of the EP and EC expressed strong support for the activities of the Central Bank of Montenegro and confirmed the importance of continued dialogue and technical cooperation.
Radović said that she is encouraged by the fact that the quality of the work of the Central Bank of Montenegro and the importance of that institution's contribution to the accession process have been recognized in all meetings at the EC and EP.
"We continue to build a stable, transparent and European-compatible financial system - in the interest of citizens and the sustainable development of Montenegro," said Radović.
As she added, the CBCG remains firmly committed to implementing the recommendations of the EC, ECB and Eurostat, with the aim of accelerating European integration and further harmonizing the institutional and operational framework with the standards of the European System of Central Banks.
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