2005-09-20
The Commission for the Coordination of the Adoption of the Euro in the Republic of Lithuania today discussed the National Euro Adoption Plan which lays down the major elements of the changeover, the timetable and key involved institutions seeking to ensure successful preparation and ultimate adoption of the euro in Lithuania on 1 January 2007.
The goal of the Lithuania’s Public Information and Communication Strategy also supported by the Commission is to help the public to prepare for the introduction of the euro and contribute to a smooth and successful changeover in the country.
“These documents will make it possible to coordinate the preparation that is already underway among different institutions and act on the single purpose so that the changeover to the single currency of the European Union is successfully carried out in time, does not cause difficulties to the population and businesses,” said Reinoldijus ?arkinas, Chairman of the Board of the Bank of Lithuania.
The Euro Adoption Plan will be considered by the Government next week, and the Bank of Lithuania will also be asked to support it.
The timetable for the changeover provided in the Euro Adoption Plan contains the preparation period, dual circulation (of the litas and the euro) period and further measures after the dual circulation period.
The Plan puts a special focus on consumer interests and includes assessment of the price conversion, analysis of public complaints, provision of information and consultations to the public on the issues of the adoption of the euro. Under the Plan, payments in litas will be allowed for another 15 days. The Plan also notes that during the dual circulation period retailers will be able to accept payments in both euro and litas, while the change should only be paid in euro.
The Plan proposes to urge trade companies and service providers to adopt a “code of good will” which would oblige to abstain from using the euro as a pretext for raising prices and convert the prices for the consumers from litas to euro without any additional charges.
The planned dual display of prices should be useful from the information point of view as it would facilitate better understanding of prices of goods and services in euro and will allow the public to control the process. Under the Plan, persons engaged in the sale of goods (services) will have to introduce dual display of prices of goods (services) in euro and in litas at least 60 calendar days before the date of the adoption of the euro and for 60 days after the date of the adoption of the euro. Pensions, wages and other payments will also be indicated in both euro and litas.
Deposits in bank accounts and other amounts in accounts in litas will be converted to the euro free of charge on the date of the adoption of the euro. All references to the litas in legal acts, contracts and other documents will be considered references to the euro from the date of the adoption of the euro. All contracts with references to the litas will continue to be effective after the adoption of the euro. The value in litas will mean the value in euro converted in accordance with the irrevocably fixed conversion rate between the euro and the litas. Unilateral termination of current contracts because of the replacement of the litas with the euro will not be allowed; however, it will not be forbidden by mutual agreement of the parties.
According to the Plan, the Bank of Lithuania will exchange litas into euro free of charge for an unlimited period in unlimited amounts. Commercial banks will exchange litas into euro free of charge for 60 days following the date of the adoption of the euro. After the expiry of this period, commercial banks will be allowed to charge a fee for the exchange of the currency.
The Plan also notes the necessary amendments to the legislation of the Republic of Lithuania, including the Constitution.
Lithuania's Public Information and Communication Strategy for the Adoption of the Euro distinguishes different target groups on the basis of the nature of their activities and information needs, and provides information and communication measures to reach them, including advertising, public relations, publishing, internet and other means of communication, defines communication channels and information multipliers.
The Commission for the Coordination of the Adoption of the Euro in the Republic of Lithuania which has supported the Euro Adoption Plan and Strategy will coordinate the actions in implementing measures related to the adoption of the euro. The Commission is chaired by the Prime Minister, with the Chairman of the Board of the Bank of Lithuania and the Minister of Finance acting as Deputy Chairmen. The members of the Commission are the Minister of Social Security and Labour, the Minister of Economy, the Minister of Justice, the Minister of Agriculture, and the Director General of the Department of Statistics under the Government of the Republic of Lithuania
The preparation for the adoption of the euro at the Bank of Lithuania has been conducted following a plan adopted at the end of last year. The work includes preparation for the changeover, liking to the European Union payment system TARGET, restructuring of the Bank’s information systems, improvement of financial accounting and reporting, other technical, logistic, legal and public information work.