Euro adoption - Important facts you need to know
With euro adoption targeted for January 1, 2008 the final irrevocable exchange rate between the euro and the Maltese lira is expected to become known between the second or third quarter of this year. The Maltese banks in collaboration with the Central...
With euro adoption targeted for January 1, 2008 the final irrevocable exchange rate between the euro and the Maltese lira is expected to become known between the second or third quarter of this year. The Maltese banks in collaboration with the Central Bank of Malta and the National Euro Changeover Committee have been working on the euro changeover project for the past two years and recommend that one keeps himself updated with developments taking place.
The following are some important developments that one should know, namely:
a) All Maltese lira credit and debit account facilities for such as current, savings, fixed and loan accounts, will be converted to euro at no cost to the customers at the irrevocable fixed conversion rate on January 1, 2008. During the first quarter of 2008, the bank shall be mailing the first statements in euro.
b) It is very important that any surplus Maltese notes and coins are deposited into the banking system. As a result of an agreement with the Malta Bankers' Association, banks shall be applying a limit of Lm250 for the exchange of Maltese lira to euro as from January 1, 2008.
However, this limit will be lifted subject to bank customers informing branch managers at least 48 hours before of any required transactions. Non-customers will only be able to exchange Lm250 once. The bank shall be opening on January 2 and 3, 2008 for the exchange of cash only. The following approach is being applied for security reasons.
c) There shall be a dual circulation period of one month, i.e. throughout all January 2008. However, banks in accordance with the NECC master plan, shall be accepting Maltese notes and coins for three months i.e. for the period from January till the end of March 2008. After the end of March, clients would need to change Maltese lira notes and coins at the Central Bank of Malta. The Central Bank of Malta will accept coins up to a period of two years and notes for a period of 10 years.
d) Banks will be selling euro coins starter kits as from December of 2007. There are two types of starter kits: the equivalent of Lm5 euro coins for personal use and the equivalent of Lm56.24 for the business retail community. If you have a business and are a heavy user of coins, please contact your local branch to make the necessary arrangements. Euro notes for the general public will be made available as from January 1, 2008.
e) The banks shall be removing its commission on Lm/euro and euro/Lm transactions as from December 1, 2007. This does not imply that the exchange of Maltese lira to euro will commence on this date.
The exchange of Maltese lira notes and coins to euro will commence after e day. The Maltese lira will remain legal tender till the end of December, 2007; while the euro will become legal tender on January 1, 2008. At this stage of the euro changeover project, it is not recommended that one converts Maltese lira into euro from now.
f) As from January 1, 2008 one would be able to use his/her Maltese lira cheque book. However, one would need to cross out the 'Maltese lira' currency symbol and instead write down 'euro'. One would also need to sign next to the crossed out Maltese lira currency symbol.
During the last quarter of 2007, the bank shall be issuing cheque books without a currency symbol. It is important that one fills in the currency symbol Maltese lira prior to e day and the euro symbol after e day. Also after e day, the bank shall be issuing euro cheque books on request.
As recommended by the European Payments Council, we urge customers to make more use of internet banking and/or direct credit and credit transfer banking facilities which are more efficient.
Keep yourself updated on developments related to the euro changeover by visiting the Bank of Valletta's corporate website www.bov.com; or the National Euro Changeover Committee website on www.euro.gov.mt or the Central Bank of Malta www.centralbankmalta.com.
Mr Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.
The following are some important developments that one should know, namely:
a) All Maltese lira credit and debit account facilities for such as current, savings, fixed and loan accounts, will be converted to euro at no cost to the customers at the irrevocable fixed conversion rate on January 1, 2008. During the first quarter of 2008, the bank shall be mailing the first statements in euro.
b) It is very important that any surplus Maltese notes and coins are deposited into the banking system. As a result of an agreement with the Malta Bankers' Association, banks shall be applying a limit of Lm250 for the exchange of Maltese lira to euro as from January 1, 2008.
However, this limit will be lifted subject to bank customers informing branch managers at least 48 hours before of any required transactions. Non-customers will only be able to exchange Lm250 once. The bank shall be opening on January 2 and 3, 2008 for the exchange of cash only. The following approach is being applied for security reasons.
c) There shall be a dual circulation period of one month, i.e. throughout all January 2008. However, banks in accordance with the NECC master plan, shall be accepting Maltese notes and coins for three months i.e. for the period from January till the end of March 2008. After the end of March, clients would need to change Maltese lira notes and coins at the Central Bank of Malta. The Central Bank of Malta will accept coins up to a period of two years and notes for a period of 10 years.
d) Banks will be selling euro coins starter kits as from December of 2007. There are two types of starter kits: the equivalent of Lm5 euro coins for personal use and the equivalent of Lm56.24 for the business retail community. If you have a business and are a heavy user of coins, please contact your local branch to make the necessary arrangements. Euro notes for the general public will be made available as from January 1, 2008.
e) The banks shall be removing its commission on Lm/euro and euro/Lm transactions as from December 1, 2007. This does not imply that the exchange of Maltese lira to euro will commence on this date.
The exchange of Maltese lira notes and coins to euro will commence after e day. The Maltese lira will remain legal tender till the end of December, 2007; while the euro will become legal tender on January 1, 2008. At this stage of the euro changeover project, it is not recommended that one converts Maltese lira into euro from now.
f) As from January 1, 2008 one would be able to use his/her Maltese lira cheque book. However, one would need to cross out the 'Maltese lira' currency symbol and instead write down 'euro'. One would also need to sign next to the crossed out Maltese lira currency symbol.
During the last quarter of 2007, the bank shall be issuing cheque books without a currency symbol. It is important that one fills in the currency symbol Maltese lira prior to e day and the euro symbol after e day. Also after e day, the bank shall be issuing euro cheque books on request.
As recommended by the European Payments Council, we urge customers to make more use of internet banking and/or direct credit and credit transfer banking facilities which are more efficient.
Keep yourself updated on developments related to the euro changeover by visiting the Bank of Valletta's corporate website www.bov.com; or the National Euro Changeover Committee website on www.euro.gov.mt or the Central Bank of Malta www.centralbankmalta.com.
Mr Cassar Torreggiani is the executive head responsible for the euro changeover programme at Bank of Valletta.