The CLVPS is a payment system in which payment transactions in kuna are settled for the purpose of implementing the monetary policy of the CNB, payment transactions for the purpose of supplying banks with cash, payment transactions for the purpose of executing transactions in financial instruments, payment transactions for the purpose of the final settlement of other payment systems and other payment transactions.

The CLVPS participants are the CNB, credit institutions (banks and savings banks) with the head office in the Republic of Croatia which have been granted authorisation from the CNB, the Croatian Bank for Reconstruction and Development as well as the Central Depository Agency (CDA).

The rules of operation, operational procedures and standards that must be met by the mentioned participants are prescribed by the CNB (Regulation). For each participant in the CLVPS, the CNB opens and operatively manages an account through which payment transactions are settled.

The CLVPS infrastructure comprises the Central Accounting System (CAS) application, the SWIFT platform (telecommunications networks for the exchange of standardised authenticated messages) and the FIN Copy service, which allows the CNB to transfer payment transactions between the payer and the payee and to register the changes in the accounts of participants in the CLVPS as a consequence of the payment transaction settlement.

Mode of operation of the CLVPS

Payment transactions in CLVPS are settled during a settlement day in accordance with the Work Schedule for the CLVPS. The CLVPS is open on each business day, except Saturday, Sunday and the days laid down by the act governing public holidays, memorial days and non-working days in the Republic of Croatia. A settlement day in the CLVPS starts at 7:30 a.m. and lasts until 6:00 p.m. on the current business day.

Interbank payment transactions are settled in the accounts of participants in the CLVPS in real time, on a gross basis (each order individually, in the amount to which it is issued), up to the amount of the coverage in accounts for the settlement of the system participants.

The CLVPS enables the participants to initiate only credit transfers via the SWIFT telecommunications network by creating the appropriate types of SWIFT payment messages, as well as to initiate payments with a future value date (up to seven days in advance).

In terms of the act governing settlement finality in payment systems, a payment transaction shall be accepted and irrevocable in the CLVPS as from the moment of its settlement.

Payment transactions with no collateral in a participant's account in the CLVPS shall be recorded in a payment queue during a settlement day, pending the provision of collateral, but no longer than the end of the settlement day. At the end of the settlement day, payment transactions from the payment queue are returned, and the participant shall be notified thereof.

The CNB may initiate payment transactions to debit the account of each participant by way of account transfers. The CNB shall make an account transfer based on a participant's order or pursuant to regulations.

Pursuant to a regulation enacted by the CNB, the CNB has the authorisation to set the limit representing the amount of an authorised overdraft in the account of a participant in the CLVPS.

The CNB (as a bank - settlement agent) settles the final net positions in the clearing accounts of direct participants in the National Clearing System (NCS) at the end of a clearing day in the NCS through the CLVPS across the participants' accounts and the NCS clearing account.

The CNB, in accordance with the prescribed Tariffs for Services of the CLVPS, charges the fees for payment transactions settled through the CLVPS and fees for services related to the prescribed participation of a participant in the CLVPS. Fees are also charged to the Financial Agency as the operator of the National Clearing System for the services related to the NCS operation.