According to the head of the NBU, extensive preparatory work has already been carried out, so next year the National Bank hopes to start the process of Ukraine’s accession to the Single Euro Payments Area (SEPA), which will allow us to take another step in this direction. financial European integration.
The National Bank of Ukraine plans to start Ukraine’s participation in SEPA, the only euro payments area, in 2024. This was announced by Andrey Pyshny, Chairman of the National Bank of Ukraine (NBU).
During Ukraine’s financial integration into the European Union from 2024, the NBU plans to initiate the process of Ukraine’s accession to the Single European Payments Area (SEPA) with the aim of securing the national regulatory and supervisory system in the field of financial services. It complies with European norms and standards through the application of relevant EU legislation.
According to Pyshny, Ukraine has made significant progress in improving legislation for the non-banking sector, and from the beginning of 2024, a transition period will begin for the insurance market, which will ensure full compliance with European regulatory and supervisory standards.
The head of the Central Bank also assured that he will continue the modernization of banking legislation at high speed. Now the next step is to improve the requirements for the capital structure of banks, which will further increase the reliability of our banking system.
What does SEPA provide?
SEPA (Single Euro Payments Area) is the only area where there is no distinction between domestic and international payments in euros. The first changes to SEPA came into force in January 2008.
Instant SEPA payments
The SEPA zone mainly covers regular bank transfers. Payment methods with optional additional features or services, such as mobile phone or smart card payment systems, are directly excluded from the scope. SEPA instant payment plan makes it easier to use payment products on smart devices.
What will joining SEPA provide for Ukraine?
Joining SEPA will be a turning point for Ukraine’s European integration and will contribute to the growth of the Ukrainian economy. In particular, this will help simplify the entry of Ukrainian businesses into the EU market, reduce technical barriers to entry of Ukrainian fintech into the EU financial services market, and reduce the cost of money transfers from/to EU countries.
According to Pyshny, he added that EU membership ensures the free movement of capital. The NBU will work to ease foreign exchange restrictions, move towards greater exchange rate flexibility and return to inflation targeting in accordance with the strategy we have developed.
“We have also carried out extensive preparatory work and next year we plan to start the process of Ukraine’s accession to the Single European Payments Area (SEPA), which will allow us to take another step towards European financial integration,” the NBU chairman said. he emphasized.
Let us remind you that it was said that in parallel with the implementation of IBAN in March 2023, a technological opportunity will arise for Ukraine to join the Single European Payments Area (SEPA) and implement the instant payment function. Then the press service of the National Bank of Ukraine reported this.
We also recall that at the end of 2022, the NBU introduced the concept of e-Hryvnia, an electronic form of Ukraine’s currency. Options for how the digital hryvnia will operate are now being developed, which will determine its main features.
Source: Focus
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