If you have a lot of cash, bank it before the euro switch

People with large amounts of cash are being urged to deposit their money in bank accounts before the country switches to euro in January.

This money would be automatically converted into euro once the currency switch takes place.

A spokesman for the National Euro Changeover Committee said that unless the cash was deposited, there would be a "significant logistical problem" for banks and customers who want to exchange large amounts of money over the counter after January 1.

Malta, he continued, has the largest amount of cash in circulation per capita among all the EU member states.

He pointed out that the euro will remain a foreign currency until December 31, but as from December 1 banks will no longer charge to exchange lira for euro.

Banks are already obliged to accept deposits of euro banknotes into euro denominated accounts without levying bank charges. Moreover, as from this week banks started accepting euro banknotes deposited by business clients into lira accounts at the irrevocably fixed conversion rate.

The spokesman said arrangements were being made with banks to dispense smaller euro currency - particularly the €5 note - in December and the first few days of the changeover, to ensure that consumers and businesses have enough small denomination notes to facilitate the changeover.

About 40 per cent of ATMs will continue dispensing lira notes up to 10 p.m. on December 31. It is planned that some 60 per cent of ATMs - at least one in every major locality - will be dispensing euro banknotes after midnight. By noon of New Year's Day, up to 90 per cent of ATMs will be dispensing euro notes, with the rest dispensing the new currency by 4 p.m.

Deposits of lira banknotes will be possible through ATMs until the end of March.