The Government of Georgia said on Monday that it supported the package of changes in the country’s financial legislation to apply for joining the single euro payment area.
“The legislative package, which was approved by the Government today, is a very big step forward to make Georgia a hub of financial services in the region,” said Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia, Levan Davitashvili, at a briefing later on Monday.
Davitashvili spoke in detail about the Single Euro Payment Area (SEPA) and the importance of Georgia’s integration into it.
He suggested that SEPA was an EU integration initiative aimed at harmonizing the execution process of electronic euro payments across Europe and the “continuous development” of a single market where cross-border payments can be made under the same conditions as national payments.
Davitashvili stated that SEPA removed technical, legal and market barriers between participating countries and enabled consumers and businesses to make electronic payments in euros under the same basic conditions and based on the same rights and responsibilities within or across national borders.
The Minister suggested that consultations with the private sector have already taken place while working on the bill.
He also emphasized the role of the National Bank of Georgia in the preparation of the package of changes, as well as in its implementation.
“Legislative innovation develops a competitive environment in Georgia in terms of Fintech services and incentives. A new ecosystem will be formed, which will open a very wide field of development for payment and financial services companies. As a result, both Georgian banks and payment companies will become part of the European space”, Davitashvili said.
“The most tangible result of European integration is the economic benefits that Georgia should receive as a member of the European Union. If we become a part of this system already in the financial part, we will be a perfect participant in it. Accordingly, Georgian banks will not need to have correspondent accounts with partner banks, transfers will be made very quickly; Consumer rights will be better protected; Payment issues will be simplified for both individuals and businesses,” said the Vice Prime Minister.
The Vice Prime Minister expressed hope that the amendments would be approved by the Parliament soon, after which the country would be able to apply for membership in SEPA.
