Brussels, 19/01/2015 (Agence Europe) - The changeover from the litas to the euro in Lithuania went without a hitch in the first two weeks of January, the European Commission and the ECB report.
“No major problems were encountered and banks, post offices and retailers coped well with the extra workload caused by the changeover process and the parallel handling of two currencies”, the Commission said in a press release on Friday 16 January.
Payments in litas will now no longer be possible, although prices will continue to be posted in both currencies until the end of June 2015. The old Lithuanian currency, whose fixed exchange rate against the euro has been set at 3.45280 litas to 1 euro, can still be exchanged free of charge at the Lithuanian Post and some credit unions until 1 March, and at commercial banks until 30 June 2015. The Bank of Lithuania will continue to provide the same service indefinitely. Outside Lithuania, national central banks will be able to do the same until the end of February.
The Lithuanian banking sector and the Lithuanian post office network have put 132 million banknotes and 370 million coins into circulation. 900,000 starter kits of a value of 11.59 euros were distributed before Lithuania became the 19th country of the eurozone on 1 January.
ESM. Joining the euro brings with it obligations in terms of macro-economic and budgetary policy. The Lithuanian authorities are currently negotiating the level of their contribution to the European Stability Mechanism (ESM), the bailout fund of the eurozone. Vilnius will not join the European Financial Stability Fund (EFSF), which will now do no more than manage the funding of countries which have applied for financial support from the eurozone before the ESM is up and running. (MB)