Montenegro has become the first Western Balkan country to join the SEPA (Single Euro Payments Area) geographical zone, marking a significant step toward financial integration with the European Union. Speaking at the panel “Payment Systems in the Western Balkans: Progress Report and Future Development,” Montenegro’s Minister of Finance, Novica Vuković, emphasized that SEPA integration is not just about standardizing payment systems but also about connecting economies, accelerating development, and improving the quality of life.
During the Spring Meetings of the International Monetary Fund and World Bank in Washington, Vuković highlighted that Montenegro has significantly strengthened its regulatory framework in the financial sector to align with European standards. He stressed that these reforms demonstrate the government’s commitment to building a stable, modern, and prosperous economy and to confirming Montenegro’s role as a reliable partner in international financial integration.
The Minister noted that Montenegro’s Central Bank recently submitted a formal application to the European Payments Council for SEPA membership, underlining the country’s high technical and regulatory readiness. He described SEPA integration as ushering in a new era for Montenegro’s financial market.
Vuković presented the expected benefits of SEPA membership, including savings of over €10.5 million in banking fees, a reduction of operational costs for businesses by nearly €7 million, and annual savings of €6 million from the formalization of remittances. The total estimated benefit is around €27 million annually, equivalent to 0.39% of Montenegro’s GDP.
He also pointed out broader macroeconomic impacts, such as increased foreign direct investment, improved export competitiveness, and greater digitalization of service sectors like tourism. Vuković stressed that beyond the numbers, SEPA membership would enhance investor trust, business competitiveness, and support the country’s economic modernization.
Importantly, he noted the long-term gains would be even greater when SEPA integration is combined with fast payment systems like TIPS, potentially generating up to €160 million annually, about 2.3% of Montenegro’s 2023 GDP.
Finally, the Minister underlined that SEPA integration will have wide-reaching effects, improving business efficiency, reducing the shadow economy, and benefiting everyday citizens—whether sending money to family abroad or offering tourists modern payment options. He thanked the Central Bank, the World Bank, and Montenegro’s banking sector for their crucial roles in supporting the SEPA integration process, which is set to be fully implemented by October 6, 2025.
