The National Bank is preparing to submit to the European Payments Council the application for the country’s accession to the Single Euro Payments Area (SEPA), which will enable citizens and companies to receive cheaper and faster cross-border payments in euros.

SEPA is an initiative of the European banking and payment industry, represented by the European Payments Council and supported by the European Commission, other institutions of the European Union (EU), and the Eurosystem, to increase the efficiency of payments in euros and further develop and deepen the common European market.

Citizens and companies from member countries can make non-cash payments in euros through credit transfers, including instant payments and direct debits, in any SEPA member country in a fast, safe, and efficient way and at the same cost as domestic payments.

With the country’s accession to SEPA, citizens and companies will have lower costs for cross-border transactions, which they will be able to carry out within one working day. In the case of instant payments, the transfer of funds will be carried out in a maximum of 10 seconds at any time of the day, including weekends and holidays. By joining SEPA, domestic banks will become direct participants in the payment systems that operate in SEPA. This means they will avoid the complex correspondent arrangements that banks currently have, leading to cheaper and faster transfers of funds. Currently, banks open correspondent accounts in foreign banks where they keep liquid assets. If a client wants to make a transfer to a recipient abroad, the transfer is carried out from these accounts if the recipient has an account in that foreign bank. Often, recipients have accounts in a bank other than the correspondent bank, requiring the correspondent bank to use its relationships with other banks to transfer funds to the final recipient.

For companies, SEPA will mean strengthened access to the EU market, as they will be able to engage more easily in cross-border trade in goods and services within the SEPA area. The efficiency of payments in the SEPA area also reduces the use of cash, promotes the use of digital payment methods, and supports the transition to a digital society. According to the National Bank, the submission of the application for accession to SEPA is a historic step for the country, providing new, better conditions for international cooperation, trade, and investments.