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Montenegro, Serbia, and Bosnia and Herzegovina to Restore Direct Payment Link After 16 Years

After a 16-year hiatus, direct payment transactions between Montenegro, Serbia, and Bosnia and Herzegovina are set to be reestablished this November.

This significant financial development has been facilitated by Universal Capital Bank (UCB), the sole institution expressing interest in joining the clearing system for payment transactions between the three countries, as reported by Podgorica’s Vijesti.

The restoration of direct payments means reduced costs for citizens and businesses, who have had to process transactions through more expensive correspondent (foreign) banks, leading to delays of several days. Now, funds will be credited on the same day as the deposit.

Back in September 2007, the central banks of Montenegro, Serbia, and Bosnia and Herzegovina concluded a special agreement on clearing international payments aimed at reducing service costs. However, direct payment transactions were only operational between Serbia and Bosnia and Herzegovina, as Montenegrin banks showed no interest in participating. Montenegro is now poised to join this system with the National Bank of Serbia (NBS) appointed as the operator.

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