The Governor of the Central Bank of Montenegro (CBCG), Irena Radović, met with the President of the European Central Bank (ECB), Christine Lagarde, at the ECB headquarters in Frankfurt. The meeting emphasized the importance of ongoing cooperation aimed at aligning Montenegro’s central banking practices with European standards.
Governor Radović highlighted Montenegro’s significant progress in modernizing its financial infrastructure, particularly focusing on the country’s recent membership in the Single Euro Payments Area (SEPA) and ongoing preparations for implementing the TIPS clone project in cooperation with the Bank of Italy, in line with decisions made by the ECB’s Governing Council.
She emphasized that joining SEPA as the 37th member represents a major milestone, improving the efficiency and resilience of payment systems, while bringing substantial benefits to citizens and the economy through faster, more secure, and cost-effective transactions. The meeting also provided an opportunity to discuss the broader framework of Montenegro’s obligations in the EU accession process, with a focus on banking supervision, payment systems, and reforms in financial management. Governor Radović presented the CBCG’s ongoing activities to improve financial and monetary standards, as well as plans for the organizational transformation of the CBCG to align with the European Central Bank/Eurosystem framework.
President Lagarde reaffirmed the ECB’s commitment to cooperating with the central banks of EU candidate countries, supporting them within its competencies in their EU accession process.
“We greatly appreciate the collaboration with the ECB on our journey to integrate into the European financial space,” said Governor Radović. “Today’s discussions confirmed our commitment to modernizing and integrating Montenegro’s financial system into the European framework, which is an essential part of our European agenda,” she added.
This meeting is part of the regular dialogue between the CBCG and the ECB, underscoring Montenegro’s unwavering dedication to aligning its financial system with European standards and contributing to the stability and resilience of the broader European financial space.
The CBCG delegation also presented the activities and achievements of the CBCG at the ECB’s Market Infrastructure and Payments Committee (MIPC) meeting the day before, at the invitation of Ulrich Bindsahl, Director General of ECB’s Market Infrastructure and Payments and Chair of the MIPC.
Governor Radović introduced the current status of Montenegro’s payment systems to the MIPC members, who are high-ranking officials from the Eurosystem central banks and the European System of Central Banks (ESCB). She highlighted the importance of Montenegro’s recent SEPA membership, particularly regarding challenges related to the high costs of cross-border payments.
“Given the high level of remittances from SEPA countries, estimates suggest that Montenegro could save more than 0.5% of its GDP annually in the medium term solely from reduced remittance costs,” emphasized the Governor.
She also presented the CBCG’s plans for the modernization of national payment systems, including the development of an instant payment system and Montenegro’s connection to the TIPS (Target Instant Payment Settlement) clone project.
“This project, approved by the European Central Bank, will mirror the EU’s TIPS payment system, further enhancing the efficiency of Montenegro’s financial system and positioning the country among those with an EU-compatible, efficient, and inclusive payment infrastructure,” concluded Governor Radović.
