2005-01-18
Bank of Lithuania Governor Reinoldijus Sarkinas presents the key tasks relating to the adoption of the euro
When acceding to the European Union, Lithuania assumed the obligation to adopt the euro in the future, which would allow the country to enjoy the benefits of the single currency of the European Union.Having assessed the benefits of the euro and the need for a comprehensive preparation for the currency changeover, the Bank of Lithuania considers 1 January 2007 to be the most acceptable date for the adoption of the euro in Lithuania, said Reinoldijus Sarkinas, Chairman of the Board of the Bank of Lithuania, at a press conference on Tuesday, January 18.
He presented the key tasks facing the Bank of Lithuania in preparation for the adoption of the euro over the next several years.These include adjustments to the legal framework, logistical and organisational preparation, public information campaign and co-operation with Lithuanian and EU institutions.
During the first half of 2005 the Bank of Lithuania will draft the Law on the Adoption of the Euro in Lithuania, which will then be presented to the concerned institutions and organisations for their consideration.The Bank of Lithuania will propose adopting such a law as soon as possible to enable public institutions, businesses and the population to get ready for the cash changeover.
The Bank of Lithuania believes that the draft Law on the Adoption of the Euro in Lithuania should lay down the principles of conversion into the euro of the balances on the bank accounts of the population and enterprises, balance sheets, securities, shares, social and other allowances, including those relating to the rounding of converted amounts, the duration of the period of dual circulation, regulation of the process of litas withdrawal from circulation, the period of dual price display (in litas and euro) on the labels of goods, bills for services, expression of wages and salaries and pensions in two currencies, as well as other aspects of this requirement.It will be proposed that the law should define the obligation for public institutions to amend the legal acts within their respective areas of regulation relating to the currency changeover (on social allowances, taxes, accounting, etc.).
Upon the adoption of the euro on 1 January 2004 enterprise balance sheets, obligations and agreements of institutions, enterprises and individuals, and all litas accounts of the population with banks would be converted to the euro in accordance with established procedures.
According to the preliminary estimates of the Bank of Lithuania, for two weeks - until 14 January 2007 - the euro would be legal tender, but payments for goods and services would also be acceptable in litas (dual circulation period).From 15 January 2007 the euro would become the only legal tender.
The Bank of Lithuania will propose for commercial banks to exchange litas banknotes and coins into the euro free of charge for a period from 3 to 6 months following the adoption of the euro.Later, commercial banks could still exchange litas into euros for a certain period of time, but a commission for the service could be charged.
The exchange of the litas into the euro by the Bank of Lithuania will be free of charge for an unlimited period at the cash offices of the Bank of Lithuania in Vilnius, Kaunas and Klaipeda.