Montenegro is poised to become the first country in the Western Balkans to join the Single Euro Payments Area (SEPA) on January 1, 2025. This announcement was made by Gert Jan Koopman, the Director-General of DG NEAR, during a joint session of the European Parliament’s Foreign Affairs and Budget Committees. The Central Bank of Montenegro (CBCG) shared this news on their Facebook page.
Koopman expressed confidence that Montenegro will lead the way into SEPA, with Albania and North Macedonia expected to follow suit soon. He noted that Serbia and Kosovo have also shown considerable interest in joining, and he hopes Bosnia and Herzegovina will embark on this path in the near future. This milestone is anticipated to significantly enhance Montenegro’s economy and business landscape, creating new opportunities for both citizens and businesses.
In early July, the Central Bank of Montenegro submitted a formal request for SEPA membership on behalf of the country. The CBCG emphasized that this step represents a key advancement in integrating Montenegro’s financial system into the European economic and market framework.
Membership in SEPA is expected to provide numerous benefits, including substantial reductions in transaction costs, faster transaction times, and simplified cross-border payments across Europe. After the membership request was submitted, CBCG Governor Irena Radović highlighted that this marks a historic step forward.
“Efficient cash flow management, simplified international business operations, and the opening of new trade and investment opportunities are just a few of the benefits we anticipate from joining SEPA,” Radović stated.
The formal request was preceded by significant progress in aligning local regulations with the European Union (EU) legal framework, achieved through collaborative efforts between the CBCG, various regulatory bodies, and the government and parliament of Montenegro. This included developing and implementing laws on payment services, credit institutions, money laundering prevention, the free movement of capital, and personal data protection.
Radović emphasized that the objective is to make Montenegro a more appealing destination for foreign investments by fostering a reliable and efficient financial system that is fully integrated into the European framework.
“Joining SEPA will bring concrete benefits to Montenegrin citizens and the economy, further aligning us with our ultimate goal of full EU membership and integration into the European Central Bank system,” she remarked about the SEPA membership request. She also noted that joining SEPA would significantly support the development of the banking sector, enhancing its interactions with other economic participants.
“While implementing SEPA standards will necessitate further adjustments and enhancements to our banking system, we are confident that, with the dedication and collaborative efforts of all stakeholders, we will successfully overcome these challenges in a timely manner,” Radović assured.
SEPA, initiated in 2008 with the backing of the European Commission and the European Central Bank, aims to standardize payment systems across Europe, enhance payment efficiency, and lower transaction costs among member countries. Currently, the SEPA area comprises 36 countries, including all EU member states, as well as the UK, Iceland, Liechtenstein, Norway, Switzerland, Monaco, San Marino, Andorra, and Vatican City. The CBCG previously clarified that SEPA membership will eliminate discrepancies in speed, costs, and processes between national and international payments.
“The payment system employed by SEPA members will allow citizens and businesses to conduct payments within the SEPA area significantly faster and at costs reduced by up to six times compared to current rates,” the CBCG explained.
According to the CBCG, Montenegrin businesses will gain easier access to the European market through SEPA membership, providing opportunities for expansion, increased competitiveness, and innovation. This membership is expected to positively impact key sectors such as tourism and trade, as well as attract foreign direct investments.
