ECB's Tumpel-Gugerell still sees single euro zone payment scheme from Jan 2008 |
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Tue, 20 Feb 2007 08:34
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PARIS (AFX) - European Central Bank board member Gertrude Tumpel-Gugerell said the plan for a single euro payments area (SEPA) is still on track to begin operations from Jan 1 2008, despite ongoing disputes about organising cross-border operations.SEPA would allow consumers to make non-cash payments throughout the euro zone as easily as in their own countries, and forms one part of several efforts to harmonize financial operations throughout the EU.But the plan has run into trouble because of the various methods of handling of cross-border payments, with banks in some countries keeping transfer orders on behalf of the person making the payments, while in other countries, the bank of the recipient retains the transfer order.'It's a question of finding a solution for making these two different cross-border payment systems compatible,' Tumpel-Gugerell said. 'Despite this, the timetable should be kept.'Regarding Target 2 Securities, the project for unifying the clearing and settlement operations for financial transactions throughout the euro zone, she said that financial institutions, like credit card companies, will not be obliged to join the system.'There is no plan to make the Target 2 Securities system obligatory. But it will be attractive for both operators and users,' Tumpel-Gugerell said.ECB studies estimate that the system would reduce transaction costs to 28 euro cents, below current rates, she said.paris@afxnews.comjs/lamCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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