CBBH Governor Jasmina Selimović, Ph.D. hosted the Head of the EU Delegation, Luigi Soreca

On 20 November 2024., the Governor of the Central Bank of Bosnia and Herzegovina (CBBH)Jasmina Selimović, Ph.D. hosted the Head of the European Union Delegation and EU Special Representative in Bosnia and Herzegovina, Mr. Luigi Soreca. During the meeting, there were addresssed the key issues related to the role of the CBBH in the European integration process, the modernization of payment systems and the improvement of the financial framework in accordance with European standards.

Governor Selimović and Mr. Soreca discussed the activities that the CBBH is implementing in terms of bringing Bosnia and Herzegovina closer to the European Union, with a special emphasis on maintain monetary and financial stability. The modernization of payment systems in the context of harmonization with SEPA (Single Euro Payments Area) and TIPS (TARGET Instant Payment Settlement) was the central topic of the meeting, where it was emphasized that SEPA is one of the priorities of the Growth Plan for Bosnia and Herzegovina. It was also emphasized that the CBBH has launched a coordination mechanism involving the Entities' Ministries of Finance, Entities' Banking Agencies, and the Association of Banks of BH. These activities are strongly supported by the World Bank, as part of the Western Balkans Payment Systems Modernization Project, the United States Agency for International Development (USAID), and the European Commission in BH.

„The Central Bank of Bosnia and Herzegovina is a key institution in the European integration process, especially through ensuring macroeconomic stability and implementing reforms in line with EU best practices,“ emphasized Governor Selimović.

„The introduction of the SEPA and TIPS standards will not only speed up and facilitate cross-border payments for citizens and businesses in Bosnia and Herzegovina, but will also significantly improve the country’s financial connectivity with the European Union,“ emphasized the Governor. She added that the CBBH has already taken a number of steps towards adopting these systems, which will ensure more efficient and secure payment flows.

The benefits of joining SEPA and building the necessary infrastructure, with interoperability with EU payment infrastructures, among other things, are measurable in the form of a reduction in fees for cross-border payments, better connections with the diaspora, reduction of informal money flows, attraction of foreign investments, and potential growth of capital markets.

Mr. Soreca expressed the EU Delegation's support for the CBBH's efforts in this important reform segment, emphasizing that the modernization of payment systems plays a key role in increasing the competitiveness of the economy and attracting foreign investment, as well as in bringing BH closer to EU standards.

The interlocutors agreed that the CBBH and the EU Delegation will continue to cooperate closely on priority issues related to financial stability, reforms and European integration. „The support of the European Union and cooperation with the EU Delegation have the crucial importance for the continuation of the reform processes and the creation of solid foundations for the future membership of Bosnia and Herzegovina in the European Union,“ concluded Governor Selimović.

The CBBH remains committed to further modernization and implementation of European standards in order to strengthen economic stability and provide better services to the citizens and economy of Bosnia and Herzegovina.