CBK Delegation Meets with Directorate-General for Financial Stability, Financial Services and Capital Markets Union of the European Commission (DG FISMA): Pre-Application for Kosovo’s SEPA Membership Confirmed and Next Steps Outlined

Governor Ismaili and Deputy Governor Fusha of the Central Bank of the Republic of Kosovo (CBK) met with Mr. John Berrigan, Director-General for Financial Stability, Financial Services, and Capital Markets Union at DG FISMA, to discuss the CBK’s pre-application for membership in the Single Euro Payments Area (SEPA), which was submitted on October 14, 2024.

The discussions focused on the significant reforms and progress by the CBK in aligning its legislation with European Union standards, including the preparation of necessary legal amendments that enabled the pre-application for SEPA membership.

During the meeting, DG FISMA confirmed the receipt of CBK’s pre-application by acknowledging the substantial work undertaken by the CBK to reach this milestone. The pre-application has also been submitted to the European Payments Council (EPC).

The meeting emphasized the need for the final approval of two key laws—the Law on Banks and the Law on Payment Services—which will allow DG FISMA to provide a thorough assessment, comments, and recommendations during this initial stage. DG FISMA reaffirmed its commitment to efficiently process the pre-application, anticipating the receipt of the approved legislation to provide further guidance on the subsequent steps toward final SEPA membership.

The CBK expressed its readiness to prioritize addressing any feedback from DG FISMA, while also expressing confidence that the Assembly will expedite the approval of the draft laws in accordance with legal procedures.

Following the completion of this stage, the process will advance to the European Payments Council (EPC), where a final decision on Kosovo’s SEPA membership could be anticipated next year as part of the broader Western Balkans integration initiative.

The CBK expressed appreciation for the ongoing cooperation and support from the European Commission, particularly DG FISMA and DG NEAR, throughout this crucial process. It also acknowledged the support from the World Bank and other partners in reaching the pre-application submission.

Additionally, the CBK extended its gratitude to Kosovo’s institutions for their contributions and support during the pre-application process, expressing confidence in the Assembly’s continued commitment given the national significance of SEPA membership. SEPA integration is expected to bring substantial economic benefits, including an estimated annual savings of about €55 million in international transfer fees.

This meeting followed the October 14, 2024, gathering where the Governor met with DG NEAR’s Mr. Koopman and another meeting with the Director-General of the EPC alongside other regional governors, as part of the regional integration process led and strongly supported by the EU. The recently launched Growth Plan is among the key instruments aimed at achieving these objectives.