Euro switch so far so good

TALLINN - According to Katrin Taliharm, managing director at Estonian Banking Association, nearly 10 million euros have come into circulation via the banks. She says that bank customers have been “calm and reasonable about adoption of the euro during the first days of the year.”

Taliharm asserts that people have withdrawn a total of 5 million euros from ATM’s since Jan. 1. “A lot of bank offices were open on January 1-2, where nearly 40 million kroons (2.5 million euros) were exchanged for euros. A lot of clients preferred to deposit kroons in their bank account, during which an additional 30.5 million kroons were converted into euros,” says Taliharm.
“Today, we can observe a considerable increase in the activity of the clients and waiting time is already getting longer in lots of bank offices,” she adds. Taliharm reiterated that currency exchange continues in all bank offices until June 30, and during the two-week dual circulation period it is possible to pay in kroons as well.

“Changeover to the euro is continually going very well. During the period from January 1-14, it is possible to pay in Estonia both in euros and kroons, change is given in euros, if possible.”
Kroons can be exchanged for euros in all bank offices rendering services in cash until June 30, 2011 without a fee and at the official rate of 1 euro for 15.6466 kroons. Kroons can be exchanged for euros on the same conditions in a limited office network until the end of 2011, and the Bank of Estonia will exchange kroons for euros during an unspecified term and free of charge. Additionally, kroons can be exchanged for euros in 178 post offices during the period of January 1-15.
Taliharm mentioned that “there was enough cash for everybody” and the restriction of 1,000 euros per person has not been applied.

According to Estonian Minister of Finance, Jurgen Ligi, as of Jan. 7, half of the old currency still circulating on the street has been exchanged to euros. “Overall, the IT systems, ministries, and municipal governments have done a good job. The Bank of Estonia deserves to be commended, as well as the security services and police, as there have been no serious security breaches. And commercial banks have worked well together,” said Ligi.

The minister said circulation of the new currency is stabilizing quickly. He added that long waiting lines in banks and at ATMs, that stretched for hours in the beginning of the week, have now normalized.
Ligi said that so far, the police have been informed of five incidences of counterfeit euros. “Criminals are trying to exploit the moment. The currency is still new for the people, but five incidences are not so many, considering that there are normally 60 in a year. Things have been quite calm,” he said.

He noted that the European Commission will soon release its own overview of Estonia’s transition to the euro.