Croatia, the 20th member of the euro area, is joining all TARGET Services.
Croatian banks have been using the Eurosystem’s TARGET2 platform for large-value payments for bank-to-bank and commercial transactions since 2017, even before the country adopted the euro on 1 January 2023. On 20 March 2023, the Croatian market migrated to the new T2 large-value payment system, along with more than 1,000 other European commercial and central banks.
The onboarding of Croatia to TARGET Services continues:
First, the Croatian market will join the retail payment system TARGET Instant Payment Settlement (TIPS) in June 2023. Seven banks and the Croatian automated clearing house Financial Agency (FINA) will connect to TIPS. This will enable European citizens to send and receive money to and from Croatian bank accounts instantly at any time or day of the year, thanks to the system’s pan-European reach.
Second, in September 2023 the Croatian central securities depository Središnje klirinško depozitarno društvo d.d. (SKDD) will join TARGET2-Securities. This will allow participants to settle securities transactions seamlessly with users from 20 other European countries in central bank money.
Finally, the Croatian national central bank, Hrvatska narodna banka, and its counterparties will join the new Eurosystem Collateral Management System scheduled for launch in April 2024. Together with the other euro area national central banks and markets, the Croatian market is participating in the ongoing testing and migration activities.
The Eurosystem is looking forward to onboarding the Croatian community to all its TARGET Services, ensuring the free flow of cash, securities and collateral across Europe.