Gov't supports legislative amendments to join Single Euro Payments Area

The Government of Georgia has supported three amendments in the country's financial legislation to facilitate the country joining the Single Euro Payments Area, the Ministry of Economy announced on Monday.

The move comes in the Government’s efforts to join the Area, which makes cross-border payments in Euro as simple as national payments, with Georgia’s application to join SEPA to be submitted if the bills are approved by the country’s Parliament.

The amendments include: 

• PSD2 Payment System Directive (EU) - on making amendments to the Law of Georgia on Payment System and Payment Services
• CRD Capital Requirement Directive (EU) - on making amendments to the Law of Georgia on the Activities of Commercial Banks
• VASP – Virtual Asset Service Provider - on making amendments to the organic law of Georgia about the National Bank of Georgia

Economy Minister Levan Davitashvili said the three bills supported by the Government were a "very big step forward" in the push for Georgia to become a hub of financial services in the region. 

• Georgia prepares to join Single Euro Payments Area - PM

Davitashvili explained SEPA was an initiative for European Union integration aimed at harmonising 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. 

SEPA removes technical, legal and market barriers between participating countries and enables consumers and businesses to make electronic payments in Euros under the same basic conditions and subject to the same rights and responsibilities, regardless of where they are located within or across national borders”, Davitashvili said.

He added this "legislative innovation" would contribute to the development of a competitive environment in Georgia in terms of financial technology services and incentives. The Minister said the initiatives would see the formation of a “new ecosystem”, which would open a “wide field of development” for payment and financial services companies, leading to both Georgian banks and payment companies becoming a part of the European space. 

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", Davitashvili said.

The Minister added consultations with the private sector had taken place while the work on the amendments was proceeding.