Eurosystem expressed its expectations regarding SEPA

Press release of Bank of Lithuania.

The European Central bank and 16 national central banks of the euro zone have developed expectations for different stakeholders, an approach taken as a result of the fact that a number of different market participants asked for more SEPA (Single Euro Payments Area) guidance from the Eurosystem. The published expectations and recommendations shall provide support to the national banking communities, as well as payment institutions, in their communication efforts with users. Moreover, the expectations will give users guidance with regard to the adjustment of their payment-related activities in terms of what they can expect from their bank/payment institution.

The Eurosystem expects banks/payment institutions to ensure their operation capability to send and receive SEPA payments. Business processes and software applications are expected to be adapted to the SEPA requirements and SEPA standards are expected to be introduced for communication with customers. The Eurosystem expects companies, public administrations and individuals to use a payment service provider which observes the SEPA rules and expectations.

"This document of expectations reveals a firm disposition of the Eurosystem regarding SEPA. Although all SEPA opportunities will be used by Lithuania‘s payment market when our nation will join the Eurozone, it is crucial to understand that SEPA is the foundation for the future European retail payment business. Therefore we must pass on to it as soon as possible. We hope that Lithuania‘s payment market participants will pay attention to the expectations and recommendations developed by the Eurosystem", - the chairman of national SEPA coordination committee, a member of Bank of Lithuania board Vaidievutis Geralavičius is being quoted.

In Lithuania, like in the other European Union states, SEPA credit transfers first have been made at the beggining of 2008. At the moment a possibility to receive SEPA credit transfers are offered by six commercial banks and all sections of foreign banks. An opportunity to iniciate SEPA credit transfers is offered by two banks. All other banks have foreseen to get ready for this service by the end of 2009. The big majority of Lithuanian banks already correspond to SEPA requirements for payment cards. Those which do not, have foreseen to correspond to these requirements by the end of 2010.

SEPA is a single euros payment area in which individuals and corporates are able to make cashless payments throughout the euro area using a single set of payment instruments as easily, efficiently and safely as they can today at the national level. At the moment SEPA encompasses all European Union member-states as well as Norway, Iceland, Liechtenstein and Switzerland. Private clients, companies and other economic subjects can send and receive domestic and cross-border payments in euros. Equal conditions, rights and obligations will be applied for these payments.

The document with the Eurosystem‘s expectations and comprehensive information regarding SEPA is available at the website of Bank of Lithuania.