Central Bank of Montenegro outlines SEPA and TIPS-clone instant payments reforms to support EU integration

Central Bank of Montenegro Governor Irena Radovic used the MICEB 2025 conference to outline the central bank’s activities to align with the European System of Central Banks and support Montenegro’s EU accession process, linking sustainable finance and digital transformation to that agenda. The speech highlighted payments modernisation as a key reform strand, citing Montenegro’s adherence to the Single Euro Payments Area (SEPA) and ongoing work to establish a national instant payment system based on a European TIPS clone. The Central Bank’s updated estimates put the potential benefits from full implementation at around EUR 160 million per year, or about 2.3% of gross domestic product, and include savings in payment transactions, increased foreign direct investment, and improved digital inclusion and competitiveness in exports and tourism; it also projects a EUR 2,583 rise in per capita income over the next decade and a reduction of more than 11 percentage points in the per capita income gap with the European Union. On the sidelines, Radovic met Nobel laureate James Robinson to discuss the implications of geo-economic fragmentation and the role of independent and inclusive institutions in sustainable development, with both sides pointing to institutional reforms as a channel to accelerate growth and reduce inequalities.