President promulgates euro adoption bill

  • 2013-02-15

RIGA - According to the information published in the government’s official newspaper Latvijas Vestnesis, Latvian President Andris Berzins promulgated euro adoption bill today.  

The euro introduction bill stipulates the period when euros and lats will circulate simultaneously, cash exchange, the period during which price tags will include prices in both euros and lats, altering Latvia's accounting systems in accordance with euro requirements, and other related matters.

The bill states that after the adoption of euro, prices for goods and services will be rounded up or down to the nearest cent.

After euro is introduced, euros and lats will circulate simultaneously during a period of two weeks. After that, euro will become the only legal tender in Latvia; ATMs will issue euros only.

Residents will be able to exchange lats to euros during six months, or indefinitely if lats are exchanged to euros at the Bank of Latvia's offices. Post offices in rural areas where banking services are unavailable for residents will be exchanging lats to euros during a period of three months. Money in residents' bank accounts will be automatically converted into euros. Loans in lats will no longer be issued by credit institutions from the day Latvia adopts euro.

The Bank of Latvia will have to ensure timely minting of euro coins and printing of euro bills, provide credit institutions with the new currency and distribute batches of euro coins. The Bank of Latvia will also be responsible for the withdrawal of lat bills and coins from circulation.

Post offices will be permitted to sell postcards and stamps with the price indicated in lats for a period of one year after the introduction of the euro.

Price tags will show prices in both euros and lats for three months before and six months after the introduction of euro, receipts and invoices will also show amounts in both lats and euros during this period.

After euro is introduced in Latvia, all taxes and duties, late payment fees previously set in lats will be converted to euros.

The bill also lays down a procedure for transition from the RIGIBOR index to the EURIBOR index and the related procedures.

The Financial and Capital Market Commission, Bank of Latvia, State Revenue Service and Consumer Protection Center will have to ensure that these requirements be observed during the transition period. Companies that fail to observe the requirements will be fined or have their licenses revoked.

The bill provides a procedure for amending or updating laws and Cabinet regulations, decrees and recommendations, regulations issued by the Financial and Capital Market Commission, Bank of Latvia's regulations and relevant local governments' regulations so they remain valid after the introduction of the euro

Latvia is planning to switch from lat to euro on January 1, 2014. According to the Finance Ministry's information, the euro exchange rate, which the European Council will set in the summer of 2013, will be about the same as now: 0.702804 lats per euro.

Saeima endorsed the euro adoption bill in the second and final reading on January 31.