March 2010 | Latvia sets 1 Jan 2014 target for introduction of euro

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. 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 However, as of January 1, 2014 the lats banknotes and coins will be gradually withdrawn from the circulation and replaced with the euro.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. 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 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.