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Tuesday, 21.10.2014, 01:44
Latvia’s president promulgates euro adoption bill
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 the euro requirements, and other related matters.
The bill states that after the adoption of the euro, prices for goods and services will be rounded up or down to the nearest cent.
After the euro is introduced, the euro and the lat will circulate simultaneously during a period of two weeks. After that, the euro will become the only legal tender in Latvia; ATMs will only issue euro bills.
Residents will be able to exchange lats for euros for a period of six months, or indefinitely if lats are exchanged for euros at the Bank of Latvia's offices. Post offices in rural areas where banking services are unavailable to residents will be exchanging lats for euros during a period of three month. 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 the 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 euro and lats for three months before and six months after the introduction of the euro, receipts and invoices will also show amounts in both lats and euro during this period.
After the 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 the lat to the 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: LVL 0.702804 per euro.
Saeima endorsed the euro adoption bill in the second and final reading on January 31.