2014-11-06
Bank of Lithuania urges businesses in the country not to postpone preparations for euro cash acquisition
As the adoption of the euro approaches, part of enterprises using cash in their operations are still postponing preparations for euro acquisition. In order for the operations following the euro adoption to be as smooth as possible, the Bank of Lithuania urges businesses not to postpone their preparations and apply to the commercial banks providing services to them no later than by mid-November.
“We would urge entrepreneurs, who use cash in their operations, especially the small ones, not to postpone preparations for euro cash acquisition until the last moment. Those who still have not done this should apply to the commercial bank providing services to them as soon as possible and agree on the plans for euro cash delivery. Only proper preparation will prevent ‘last night’s syndrome’ and somersaulting,” says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
According to him, some commercial bank data shows that, by now, businesses have only applied for approximately half the amount of euro cash projected by banks.The Bank of Lithuania, urging to inform about the necessity to prepare for euro acquisition in advance, has already applied to the country’s business associations. In the near future, in cooperation with the State Tax Inspectorate, most legal entities in the country will be sent a separate reminder.
Commercial banks will start the frontloading of euros received from the Bank of Lithuania to their customers from 1 December. Without having done their “homework” now, traders and service providers may face difficulties in giving the change at the beginning of the next year.
On 1–15 January payments will be possible both in litas and euro; however, change to customers will have to be given in euro only, except for several exceptions provided for in the Law on the Adoption of the Euro in Lithuania to also give it in litas (at automated distribution and service provision locations, in public transport vehicles and taxis, or where there are reasonable grounds for not doing it). The experience of other countries shows that, on the first days after the euro adoption, the amount of cash in circulation may increase by several times, more payments will be made; therefore, one has to prepare for that properly.
Where the trader is very small and it may need little change, it will be able to acquire Lithuanian euro coin starter kits at the Bank of Lithuania and commercial banks from 1 December and also at Lietuvos paštas — from 4 December. The value of one starter kit is LTL 40, one person will be able to acquire no more than 5 starter kits at a time (value — LTL 200). One will be able to buy such starter kits more than once.
From 1 January 2015 one will be able to withdraw euro banknotes from ATMs. The Bank of Lithuania encourages commercial banks to fill ATMs with euro banknote denominations as low as possible.
The website of the Bank of Lithuania publishes recommendations to businesses on how to prepare for using euro cash in advance and on their acquisition.