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Andris Vilks: Latvia is going to introduce the euro in 2014

Thu, 27 Jan 2011 0:00:00 GMT

On Thursday, January 13, the Minister of Finance of the Republic of Latvia Andris Vilks within the framework of introductory visit met Hermine Poppeller, Austrian Ambassador Extraordinary and Plenipotentiary to Latvia. The parties discussed economic development trends in Latvia, Latvia's euro changeover plan, current economic situation in the European Union Member States, and further cooperation between both countries.

"The Ministry of Finance continues work at the draft fiscal discipline law to ensure strict state budget discipline. Already since 2008 the Government ensures strict fiscal discipline to decrease gradually the budget deficit down to 3% of GDP level set in the Maastricht criteria. Achievement of this goal will eliminate excessive budget deficit and ensure compliance with the Maastricht budget deficit criterion, thus laying down strong foundation for the euro changeover in Latvia on January 1, 2014," informed the Minister of Finance Andris Vilks.

During the meeting with the Ambassador the Minister also acknowledged that Latvian Government will continue implementation of already launched structural reforms in order to complete the implementation in coming years focusing on more effective work of public administration, thus attaining saving of state budget expenditure.

During the meeting H. Poppeller expressed support to the work started at implementation of structural reforms and acknowledged that currently Austria is also performing budget consolidation through structural reforms in education and health sectors.

The parties also discussed experience of Latvia in implementation of the financial sector fee. The said fee is aimed at strengthening the financial system in general in order to finance, if necessary, measures to reduce negative impact of credit institutions in difficulty on other financial market participants and also partly compensate state budget resources that were allocated to financial sector stabilisation measures and from which the banking sector in general got direct or indirect benefit.

Austrian Ambassador recognised previous mutual cooperation and the work done by Latvian Government to stabilise economic and financial situation in the state.

Euro Changeover Target Date - January 1, 2014

Tue, 16 Mar 2010 23:59:59 GMT

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.

European Commission organizes a euro photo competition for youth

Tue, 16 Feb 2010 0:00:00 GMT

DG Economic and Financial Affairs of European Commission organizes a photo competition about euro for youth.

Terms and conditions of the competition, deadlines for submitting the photos and other information about the photo competition is available at the homepage http://euroinphoto.eu/index_en.htm

The National SEPA Latvija website - SEPALatvija.lv has been launched.

Thu, 02 Jul 2009 0:00:00 GMT

The website SEPALatvija.lv has been launched. Its purpose is to inform single euro payment users - consumers, companies, public authorities, banks, payment processing providers, payment technologies providers about SEPA (single euro payments area), giving the possibility to communicate and to clarify:

• the general meaning of the SEPA project and its progress in Europe and Latvia;

• opinions of stakeholders about the SEPA project in Latvia, including public commitments to offer and use the SEPA products;

• benefits of the involved parties;

• information about the SEPA products, SEPA infrastructure, standards and other SEPA components;

• the legal framework of the SEPA project;

• the implementation progress of the SEPA project, by using the SEPA indicators;

• the results of the self-assessments in connection with the implementation process of the SEPA project

and to find out

• various publications and announcements in connection with the SEPA project.

Dual circulation of Slovak koruna and euro comes to an end

Fri, 16 Jan 2009 0:00:00 GMT

Friday, January 16, has marked the end of the dual circulation period of Slovak koruna and euro banknotes and coins in Slovakia. From tomorrow, January 17, all payments will be made exclusively in euro.

Banks will continue to exchange, free of charge, Slovak koruna banknotes until 31 December 2009 and coins until 30 June 2009, although fees may be charged by banks as of 20 January 2009 if the number of banknotes or coins exceeds 100 per transaction. Národná banka Slovenska will redeem Slovak koruna banknotes for an unlimited period of time. In the case of coins, the redemption period will run until the end of 2013.

The timely and exhaustive preparation of all professional parties, such as the banking and retail sectors, and the favourable reception of the new currency by Slovak citizens have contributed to a smooth, quick changeover to the euro. More than 2/3 of the notes now in circulation in Slovakia are euro-denominated.
The cash changeover has been progressing according to plan. No shortages or incidents of counterfeiting have been reported.

Information prepared by European Central Bank.

Government amended Latvia’s Convergence Programme 2008-2011

Tue, 13 Jan 2009 23:59:59 GMT

On Tuesday, January 13, the Cabinet of Ministers (CoM) approved Latvia's Convergence Programme 2008-2011 updated by the Ministry of Finance (MoF). Convergence Programme comprises comprehensive information about medium-term fiscal, economic and monetary policy, financial quality and institutional features of the Member State. The euro changeover date also will be named on the basis of the Convergence Programme.

Amendments were introduced in the Convergence Programme according to the Economic Stabilisation and Growth Revival Programme accepted in December, 2008 and state budget 2009 amendments. According to the updated Convergence Programme reduction of GDP is projected from 2008 till 2010 due to decrease in private consumption and investment amount. Forecasts of the MoF show that economic growth revival will start in the end of 2010 and in 2011. Key elements of the economic growth will be tradable sectors which will improve their competitiveness both in external and internal markets. It is planned that investment amount will start to increase in 2011; similarly private consumption will also revive in 2011.

It is projected that in 2009 due to reduced demand the inflation will continue to drop. However, inflation decrease will be gradual, but in the beginning of 2009 it is planned that the inflation will grow because of significant increase in value added tax (VAT) rate and excise duty rate. However, in 2010 and 2011 inflation could continue to fall down due to revival of economic activity, moderate wage increase and productivity improvements.

The Programme deals with scenario when macroeconomic corrections and adaptation of national economy structure take place in 2009 and 2010; economic growth revives in the end of 2010 and continues in 2011. However, the Programme also outlines several risks that could hinder development of national economy and reinforce economic slowdown.

The Convergence Council allows the Council of Europe to monitor, analyse and coordinate budget positions of the Member States and according to that the Council can recommend in its opinion policy measures for each country. The goal of this process is to ensure more stringent budget discipline by monitoring and coordinating budget policy in the euro area and EU.

354,000 counterfeit euro banknotes removed from circulation

Mon, 12 Jan 2009 0:00:00 GMT

In the second half of 2008 a total of 354,000 counterfeit euro banknotes were withdrawn from circulation. This is an increase of around 13% on the quantity recovered in the previous six months.

However, since the number of genuine euro banknotes in circulation is also increasing (averaging over 12 billion during the second half of 2008), the scale of counterfeiting remains small. The public can therefore have confidence in the quality of euro banknotes and their security features. At the same time, the Eurosystem, i.e. the European Central Bank (ECB) and the 16 national central banks of the euro area, advises the public to be alert and to check the authenticity of the banknotes that they receive.

Historically, the €50 has been the most counterfeited banknote, but in the second half of 2008 the most counterfeited banknote was the €20. The three mid-range denominations (€20, €50 and €100) together accounted for about 94% of all counterfeits.

The majority (98%) of counterfeits recovered in the second half of 2008 were found in euro area countries, with approximately only 1% being found in EU Member States outside the euro area and the remaining 1% in other parts of the world.

The Eurosystem continues to invest much effort in ensuring that both the public and the professional cash handling community are well informed about how to recognise a counterfeit banknote. Counterfeits can be easily distinguished from genuine banknotes by using the simple FEEL-LOOK-TILT test described in the Eurosystem's publications, as well as on the ECB's website and the websites of the Eurosystem national central banks. In cases of doubt, however, a suspect banknote should be compared directly with one that is known to be genuine. Anyone who suspects that they may have received a counterfeit should contact either the police or - where national practice allows - the respective national central bank, giving as many details as possible about the banknote's origin.

European Central Bank

Slovakia joins the Euro area

Tue, 13 Jan 2009 23:59:59 GMT

Today, 1st January, the euro has been introduced in Slovakia. The number of EU Member States using the single European currency has therefore increased to 16. The European Central Bank (ECB) welcomes this further enlargement of the euro area.

Following the adoption of the euro by Slovakia, Národná banka Slovenska becomes a full member of the Eurosystem, the central banking system of the euro area, which comprises the ECB and, as of today, the 16 national central banks (NCBs) of the EU Member States that have adopted the euro. In accordance with the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, Národná banka Slovenska has paid up the remainder of its contribution to the capital of the ECB and transferred its contribution to the foreign reserve assets of the ECB.

The integration of Slovak monetary financial institutions (MFIs) into the euro area banking system on 1 January 2009 was already taken into account in the publication of the euro area liquidity needs and in the benchmark allotment on 29 and 30 December 2008. Slovak counterparties in the Eurosystem will be able to participate in the Eurosystem’s open market operations announced after 1 January 2009.

The list of the MFIs located in Slovakia that are subject to reserve requirements is published on the ECB’s website, as are the lists of the MFIs located in the other EU Member States that have adopted the euro. The list of the assets located in Slovakia that are eligible as collateral for the credit operations of the Eurosystem is also available on the ECB’s website.

Information by European Central Bank

Dialogue between Latvia and Scandinavia is going on

Fri, 19 Dec 2008 23:59:59 GMT

Trešdien, 10. decembrī, finanšu ministrs Atis Slakteris Stokholmā tikās ar Ziemeļvalstu un Baltijas valstu finanšu ministriem. Tikšanās laikā tika prezentēta vakar valdībā apstiprinātā Latvijas ekonomikas stabilizācijas un izaugsmes atjaunošanas programma, kā arī tās ietvaros paredzētie grozījumi valsts budžetā 2009. gadam.

„Sanāksmes dalībnieki atzinīgi novērtēja tos tautsaimniecības stabilizēšanas pasākumus, kas ietverti Latvijas plānā. Pēdējo dienu laikā Skandināvijas valstis ir uzsākušas intensīvu dialogu ar Latviju par iespēju iesaistīties finanšu atbalsta sniegšanā kopā ar Eiropas Komisiju un Starptautisko Valūtas fondu. Ir iespējams, ka Zviedrija būs Ziemeļvalstu finanšu atbalsta koordinators," pēc sanāksmes sacīja finanšu ministrs Atis Slakteris.

Changes in tax policy are planned

Fri, 19 Dec 2008 23:59:59 GMT

Otrdien, 9. decembrī, skatot Latvijas ekonomikas stabilizācijas un izaugsmes atjaunošanas programmu, valdība lēma par nodokļu politikas izmaiņām. Grozījumi plānoti likumā par iedzīvotāju ienākuma nodokli, likumā par akcīzes nodokli, kā arī pievienotās vērtības nodokļa (PVN) likumā. Lai paaugstinātu ekonomikas konkurētspēju un veicinātu ieguldījumus ražošanā, ar izmaiņām nodokļu politikā plānots turpināt nodokļu akcenta pārdali no tiešajiem ar ražošanu saistītajiem nodokļiem uz netiešajiem ar patēriņu saistītajiem nodokļiem.

Grozījumi likumā par iedzīvotāju ienākuma nodokli paredz pazemināt nodokļa likmi par 2% punktiem līdz 23%. Paredzams, ka izmaiņas veicinās valsts ekonomisko attīstību, samazinot darbaspēka izmaksu daļu, kas saistīta ar nodokļu maksājumiem.

Lai izlīdzinātu akcīzes nodokļu likmi Baltijas valstīm, izmaiņas likumā par akcīzes nodokli paredz palielināt pārējiem alkoholiskajiem dzērieniem likmi līdz 825 latiem par 100 litriem absolūtā spirta, savukārt nodokļa likmi vīnam un raudzētajiem dzērieniem plānots palielināt līdz 40 latiem par 100 litriem. Tā kā stiprie alkoholiskie dzērieni ir kaitīgi veselībai, akcīzes nodoklis ir instruments, lai ierobežotu tā patēriņu.

Akcīzes nodokli plānots palielināt arī svinu nesaturošam benzīnam līdz 269 latiem par 1000 litriem, svinu saturošam benzīnam - 300 latiem, petrolejai - 234 latiem, dīzeļdegvielai - 234 latiem, naftas gāzēm un pārējiem gāzveida ogļūdeņražiem - 90 latiem. Tāpat paredzēts palielināt akcīzes nodokļa likmi kafijai no 50 līdz 100 latiem par 100 kilogramiem un bezalkoholiskajiem dzērieniem no 2 līdz 4 latiem par 100 litriem.

Izmaiņas PVN likumā paredz palielināt standartlikmi no 18 % līdz 21 %, kā arī samazināto PVN likmi 5 %, kas pašreiz ir, paaugstināt līdz 10%.. Samazinātā PVN likme 10 % apmērā turpmāk tiks piemērota tikai medikamentu piegādēm, zīdaiņiem paredzēto specializēto produktu piegādēm, siltumenerģijas un elektroenerģijas piegādēm iedzīvotājiem, kā arī sabiedriskā transporta pakalpojumiem iekšzemē.

Portal eiro.lv is launched

Fri, 19 Dec 2008 23:59:59 GMT

On December 18, 2008 internet portal dedicated to the euro changeover in Latvia was launched. In the portal citizens may get necessary information regarding the lats changeover to the euro and activities influencing this changeover.

As the euro changeover concerns all the Latvia's population the portal is oriented towards all target groups. Both - citizens and entrepreneurs, as well as journalists may find information here. The web page is interactive and modern - visitors can look at original photo galleries and use special euro calculator, as well as study analytical and research materials.

„It is important to help society to prepare for the euro changeover. That is why in the portal we will provide practical advice and suggestions. We will try to show benefits and disadvantages, as well as explain the euro changeover process. During the changeover period it is important to ensure that people feel safe and convinced that the euro changeover will not cause them losses," told the Euro Project Manager Sanita Bajāre.

The euro changeover is a common project of the whole state - public administration institutions, organisations, entrepreneurs and citizens - rather than a project of some part of society. To ensure efficient and convenient currency changeover it is greatly in hands of every citizen - one can timely get acquainted with the euro changeover process and prepare itself accordingly.

Slovakia is going to introduce the euro

Fri, 19 Dec 2008 23:59:59 GMT

Slovakia plans to adopt the euro on January 1, 2009, and today final preparatory actions are taken for the changeover. In December, postal departments, commercial banks and central bank of Slovakia started the euro changeover to crowns which caused forming of long queues.

Slovak mint started production of the euro already in August this year. Design of coins was chosen at national referendum. The €1 and €2 coins depict a double cross on three hills, as featured in the national emblem of Slovakia. The 10, 20 and 50 cent coins show Bratislava castle and the national emblem of Slovakia. The 1, 2 and 5 cent coins feature the Tatra Mountains' peak, Kriváň, a symbol of the sovereignty of the Slovak nation, and the national emblem of Slovakia.

Since August, in Slovak shops dual price display takes place providing prices both in crowns and euro. It helps people to adapt and get used to the new currency. Similar measures are also planned in Latvia when it will come closer to the euro changeover day which has to be named by the government at least two years before the planned target date.