Estonia, Financial Services, Post Office, Transport

“In our assessment, a significant burden in exchanging banknotes in certain areas could be placed on the Eesti Post,” wrote the ministry to the management board of Eesti Post.

Among other things, the letter noted that after the reports by the European Commission and by the European Central Bank “it is essentially certain that Estonia will be adopting the euro from January 1, 2011.”

In co-operation with SEB, the postal offices of Eesti Post are offering the Postal Bank services in 348 bank offices across Estonia.

“On the basis of the experiences of the countries that have adopted the euro earlier we know that close to the day of the adoption of the euro, particularly in the beginning of the parallel circulation period from January 1 to 14, the demand for cash among customers is likely to multiply,” noted the ministry in its letter. The Ministry of Finance expects such heightened demand for cash to occur in Estonia as well.

The officials of the Ministry of Finance and the management board of Estonian Post are likely to discuss the issue on May 25.

The definitive decision on whether or not Estonia would receive an invitation to join the euro area will be made the EU Council of ministers of economic affairs and finance on July 13.