The Central Bank of the Republic of Kosovo on 20 December 2024 submitted the updated pre-application with the relevant laws adopted by the Assembly and the regulations issued by the Board of CBK, in addition to the pre-application submitted on 14 October 2024. The preliminary pre-application referred to the draft laws as they were at that time, but DG FISMA as the competent authority of the European Commission notified in writing that the same could be reviewed only after the final adoption of the relevant legislation.

Therefore, immediately after the adoption of three important laws for the financial sector and directly related to the Single Euro Payments Area (SEPA) membership process, such as: the Law on Banks, the Law on Payment Services and the Amendment/Supplement of the Law on the Prevention of Money Laundering and Financing of Terrorism, by the Assembly of the Republic of Kosovo (on 05 December 2024), the Board of CBK approved twenty relevant regulations (on 17 December 2024) which will enter into force only upon the entry into force of the respective laws. These created the opportunity to complete the SEPA pre-application process, with the legislative and regulatory package.

The above-mentioned laws and regulations were identified as necessary criteria for completing the pre-application to enable the relevant institutions of the European Commission to proceed further with the implementation of this phase of the preliminary examination of Kosovo’s fulfilment of the criteria, in accordance with the practice they have followed for countries in the region.

Following this step, subject to the European Commission’s handling of issues related to the entry into force of these laws, if the constitutional procedural considerations raised regarding the procedure for adopting the laws (not their content) do not impede the important pre-application assessment process, we expect Kosovo to also receive assessments regarding the level of fulfilment of the legal and technical criteria for SEPA membership. The entry into force of the laws and regulations enables the conclusion of this preliminary process and the preparation of the final application.

This step enables DG FISMA to provide a full assessment, with possible comments and recommendations, before the final application is submitted to the European Payments Council (EPC), while a final decision on Kosovo’s SEPA membership can be expected next year, as part of the broader Western Balkans integration initiative, if there are no delays that affect the progress of this process.

The CBK expresses its gratitude for the continued cooperation and support from the European Commission, the World Bank and other partners in achieving the submission of the pre-application. At the same time, the CBK expresses its gratitude to the institutions of the Republic of Kosovo for their contribution and support during the pre-application process, expressing confidence in the continued commitment to clarify the process of relevant laws as soon as possible, considering the importance of SEPA membership and its comprehensive benefits.

SEPA integration is expected to bring significant economic and financial benefits, where in addition to other integration aspects, citizens and businesses are expected to save around 55 million euros annually on international transfer fees, as estimated by the German Expert Group (GET).

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