Euro Changeover Target Date - January 1, 2014

Ministry of Finance, 16.03.2010

Euro changeover target date in Latvia is January 1, 2014 - decided the Cabinet of Ministers on Tuesday, March 16, accepting amendments to the decree No148 "On Latvia's National Euro Changeover Plan" adopted on March 6, 2006. The Latvia's National Euro Changeover Plan was also updated according to current economic, political and administration processes.

The Plan comprises concrete euro changeover activities to ensure cash and non-cash euro changeover, public information, adjustment of legal acts, statistics, accounting, financial mechanisms and information systems to the euro, as well as protection of consumer rights. The action plan also includes concrete deadlines for the tasks and responsible institutions. The activities included in the Plan refer both to the private, as well as public sector.

The lats exchange to the euro is planned so that daily life of Latvian citizens will be disturbed as slightly as possible. To reduce the euro changeover related costs and to ensure effective exchange process in Latvia it is planned to introduce cash and non-cash euro simultaneously.

Basic euro changeover principles included in the Plan

Dual circulation period of the lats and the euro
A one-month period of dual circulation of the lats and the euro is envisaged. Till February 1, 2014 citizens will be able to settle accounts in both the lats and the euro. However, as of January 1, 2014 the lats banknotes and coins will be gradually withdrawn from the circulation and replaced with the euro. From the euro changeover day non-cash transactions will be performed only in the euro.

The lats cash exchange to the euro
The free of charge exchange will be performed:
• for six months after the euro changeover day ¬- by credit institutions, the SJSC Latvijas Pasts, the Bank of Latvia, and commercial companies holding a licence for purchases and sales of cash foreign currency after the euro changeover;
• for an unlimited period of time and amount - by the Bank of Latvia.

The euro non-cash transactions
On the euro changeover day, all non-cash balances denominated in lats on all accounts of credit institutions and other payment service providers (it refers also to payment cards) will be converted to the euro automatically and free of charge according to the currency exchange rate set by the EU Council. All transactions and payments will be conducted in the euro. The so called principle of continuity of contracts will be applied to contracts, thus the existing contracts will not have to be replaced with new ones

The period of dual price display
To ensure timely preparation of the general public - all money users - for the changeover of the lats to the euro, to help to understand the value of the new currency and allow citizens to follow prices in both currencies, the Plan provides for a dual price display period from October 1, 2013 till December 31, 2014, and it will be binding for all sellers of goods and providers of services in the state.

The euro introduction costs
Public institutions and market participants - companies, credit institutions, as well as sellers of goods and providers of services - plan and estimate the euro changeover costs according to their competences and field of operation. The euro changeover costs of public institutions will be covered from the state budget resources.

Information about the euro changeover
All citizens of the state have to receive sufficient and comprehensive information about practical issues regarding the euro changeover - the time, exchange rate, procedures for the cash and non-cash exchange, design of banknotes and coins, security features etc. More intensive public awareness campaign is planned in the lats and the euro dual circulation period. 
According to basic principles defined in the Plan - orientation towards remotely located citizens - attention will be specially paid to particular target groups, for example, citizens living in regions which are hard to reach, pensioners and persons with special needs, representatives of minorities not using information in Latvian, as well other target groups of the communication campaign.

The Cabinet of Ministers approved the informative report on achievements in the time period from August 1, 2009 till January 31, 2010 and on tasks planned in the next reporting period regarding the euro introduction in Latvia. The most important in this time period is the updated National Euro Changeover Plan with deadlines, cooperation in the communication strategy and communication action plan implementation field with Belgium Central Bank, as well as implementation of the Single Euro Payment Area project.

The updated Latvia's National Euro Changeover Plan, as well as informative report on achievements in the time period from August 1, 2009 till January 31, 2010 and on tasks planned in the next reporting period regarding the euro introduction in Latvia are available on the home page of the Ministry of Finance www.fm.gov.lv and the euro changeover home page www.eiro.lv.