Since its launch in December of last year, direct payment transactions between Montenegro and Serbia have reached approximately five million euros, according to statistics from the National Bank of Serbia (NBS).

“Regarding the transactions executed within the international clearing system between Montenegro and Serbia, from December 11, 2023, to February 2024, a total of 37 working days in the system resulted in transaction values reaching 5,099,777.56 euros. A growth trend is noticeable, despite the fact that direct payment operations were only recently initiated,” stated representatives from the NBS to Forbes Montenegro.

The volume of transactions recorded between Bosnia and Herzegovina and Montenegro amounted to 68,852 euros.

The Central Bank of BiH confirmed that this figure reflected four separate transactions.

Direct payment operations between Montenegro and other regional countries had been paused following Montenegro’s independence renewal. Although an agreement for international clearing was signed in September 2007 by the Central Banks of Montenegro, Serbia, and BiH, actual turnover was predominantly established between Serbia and BiH.

Montenegro was excluded from the payment system due to the lack of interest from Montenegrin banks, which preferred using foreign correspondent banks for transactions.

Interest from Universal Capital Bank in Podgorica has now initiated direct payment transactions with Serbia and BiH.

“According to information received from the participating bank in Montenegro, the introduction of direct payment transactions with Serbia has generated significant interest among clients, who are keen to utilize this payment method. Considering the system’s advantages and its benefits, we anticipate that more banks in Montenegro will seek to join it in the near future,” the NBS representatives remarked.

The National Bank of Serbia operates this international clearing system in foreign currency, facilitating same-day transactions in euros.

“This system allows for transactions under much more favorable conditions compared to alternative execution methods, which are typically more time-consuming and costly—costs that ultimately affect citizens and the economy. The system provides a much swifter payment process at significantly reduced costs,” stated representatives from the NBS.

A total of 12 banks (out of 20 total banks operating in Serbia) are part of this system, which also includes the NBS and 7 banks from Bosnia and Herzegovina. The first Montenegrin bank, Universal Capital Bank Podgorica, joined the system on December 11, 2023.

“This inclusion facilitates direct payment operations between Serbia, BiH, and Montenegro, and by incorporating the first bank from Montenegro into the system, it opens the door for potential new participants in this area. Given the benefits the system presents, along with the recent bank engagement and its service promotion efforts, we can expect a rise in payment volumes soon,” noted the NBS.