4. The criteria and the decision-making procedure concerning the adoption of the euro are laid down in the consolidated version of the Treaty establishing the European Community (Valstybės žinios (Official Gazette) No 2-2, 2004) and its Protocols (hereinafter referred to as “the Treaty”). Article 122(2) of the Treaty establishes that at least once every two years, or at the request of a Member State with a derogation defined in this Article (hereinafter referred to as “the derogation”), the European Commission and the European Central Bank in accordance with the procedure laid down in Article 121(1) of the Treaty shall prepare convergence reports that assess whether the Member States meet economic and legal criteria of the adoption of the euro. Decisions concerning the abrogation of the derogation, the euro adoption date and the irrevocably fixed conversion rate between the euro and the national currency shall be adopted by the European Union Council in accordance with the procedures laid down in Articles 121-123 of the Treaty.

5. The adoption of the euro and its use in the Member States of the euro area is regulated by the following European Union Council Regulations:

6. After the European Union Council adopts a decision on the abrogation of the derogation and the adoption of the euro in the Republic of Lithuania, Council Regulation (EC) No 974/98 will be amended to set the euro adoption date and the cash changeover date in the Republic of Lithuania and to specify whether a phasing-out period will be applied in the Republic of Lithuania. The irrevocably fixed conversion rate between the litas and the euro will be set in the Council Regulation amending Regulation (EC) No 2866/98.

7. With the adoption of amendments to the Constitution of the Republic of Lithuania and to the Law on the Bank of Lithuania: the Law Amending Article 125 of the Constitution of the Republic of Lithuania (Valstybės žinios (Official Gazette) No 48-1701, 2006) and the Law Amending Articles 1, 6, 7, 8, 11, 12, 14, 19, 20, 25, 31, 33, 35, 36, 38, 47, 49, 50, 53, 54, 54¹, 55, Amending the Titles of Sections IV and V of the Law on the Bank of Lithuania, Repelling Articles 26, 27, 28, 29, 30, 32, 37 and Supplementing the Annex to the Law on the Bank of Lithuania (Valstybės žinios (Official Gazette) No 48-1699, 2006), by the Seimas of the Republic of Lithuania on 25 April 2006, the national law of the Republic of Lithuania has been fully harmonized with Articles 108 and 109 of the Treaty and with the requirements of the Statute of the European System of Central Banks and of the European Central Bank.

8. The Bank of Lithuania has drafted the Law of the Republic of Lithuania on the Adoption of the Euro, with the main principles of the changeover in the Republic of Lithuania (conversion of the litas to the euro, cash exchange, withdrawal of the litas from circulation, publication of the images of euro banknotes and coins, mandatory dual display of prices, etc.). The Law will be passed by the Seimas of the Republic of Lithuania only after the European Union Council adopts a decision on the abrogation of the derogation and the adoption of the euro in the Republic of Lithuania.

9. By 1 December 2005, public authorities have reviewed and identified the legal acts that are to be adopted before the adoption of the euro in the Republic of Lithuania. Legal acts that are to be adopted before the adoption of the euro shall be reviewed at least one year before the adoption of the euro. New draft legal acts and draft legal acts amending the existing legal acts shall be submitted to the Government of the Republic of Lithuania at least four months and shall be adopted at least one month before the euro adoption date. This applies to all draft legal acts unless an earlier preparation date is set. These legal acts are classified as follows:

10. Technical amendments in legal acts (replacing references to the litas with references to the euro) will be carried out after the adoption of the euro in the Republic of Lithuania.

14. The changeover from the litas to the euro will not affect the continuity of transactions and financial instruments. After the changeover, all documents containing references to the litas will be valid until their original expiry date indicated therein. The value denominated in the litas will mean the value denominated in the euro as converted by applying the irrevocably fixed conversion rate of the euro vis-à-vis the litas.

15. The adoption of the euro shall not affect economic interests of consumers. All possible measures will be taken to prevent wrongful conversion of prices, wages, pensions, social benefits, etc.

16. Economic entities are responsible for ensuring their own organisational and technical readiness for the changeover, including the adjustment of their information systems. Costs incurred by economic entities in relation to the adoption of the euro will not be reimbursed.

17. The costs of the preparation for the changeover in the Republic of Lithuania, i.e. minting of euro coins, exchange of litas banknotes and coins for euro banknotes and coins, restructuring of the payment system, etc., will be covered by the Bank of Lithuania. The costs incurred by public authorities in relation to the adoption of the euro will be financed from the general appropriations of these authorities.

18. Given the size of the State, the structure of its financial system and the experience in currency changeover gained by public authorities of the Republic of Lithuania through the re-introduction of the litas in 1993, no transitional period is planned (the euro adoption date and the cash changeover date fall on the same day). No phasing-out period is planned, either.

19. The main time periods and elements of the changeover in the Republic of Lithuania are as follows:

20. 1 January of a respective year has been selected as the euro adoption date in the Republic of Lithuania. This date has been selected because it is the start of the new accounting period and the new fiscal year (that will enable to avoid extra labour costs and a higher risk of errors related to the handling of accounts and calculation of taxes and wages within the same year both in the litas and the euro). A lower economic activity and lower demand of cash at the beginning of the year have also been taken into consideration (this will facilitate the changeover process and minimise the risk of disruptions of the economic life). Moreover, 1 January is a favourable symbolic moment that will contribute to the information campaign and help the public to accept the single currency of the European Union.

21. From the euro adoption date, every reference in legal acts, contracts and other documents to the litas will be considered a reference to the euro, and amounts in the litas will be considered amounts in the euro as converted at the irrevocably fixed conversion rate between the euro and the litas. The irrevocable conversion rate between the euro and the litas will be set in the European Union Council Regulation amending Regulation (EC) No 2866/98.

22. Conversion of the amounts in the litas into the euro and rounding at the moment of the euro adoption will be carried out in accordance with the provisions of the European Union Council Regulation No 1103/97: in converting the litas into the euro the irrevocably fixed conversion rate between the euro and the litas which consists of 6 significant figures and is set by the European Union Council will be applied; in making conversions this rate could not be truncated or rounded; the irrevocably fixed conversion rate between the euro and the litas will be used both in converting the litas into the euro (dividing by the rate) and in converting the euro into the litas (multiplying by the rate), however, the inverse rate cannot be used; amounts to be paid or accounted for as converted into the euro shall be rounded to the nearest euro cent by applying an arithmetic rounding rule.

23. Tariffs, fees, commissions, and other similar amounts other than final amounts to be paid at the moment of the euro adoption will be converted into the euro and expressed with an accuracy of at least four decimals. More accurate principles of expression may be applied by public authorities under their own legal acts, or by contractual parties under their mutual agreements. Rounding to two decimals will be carried out only on the final monetary amount to be paid or accounted for.

24. Levies, fines or other similar payments may be re-set (in whole numbers in the euro or in other values convenient for use) by public authorities under their own legal acts, or by contractual parties under their mutual agreements. In setting new values of levies, fines or other similar payments, the digression from the values that would be obtained by converting the original values into the euro at the irrevocably fixed conversion rate shall be minimum, i.e. the adoption of the euro shall not become a pretext for increasing levies, fines and other similar payments.

25. When rounding the amounts that are not final amounts to be paid or when setting new values, the principle of continuity of contracts and financial instruments shall not be violated, i.e. final contractual amounts shall not be affected.

26. When converting wages, pensions and other social benefits, they shall be rounded to the nearest euro cent to the benefit of the recipient (when the digit following the last digit to be kept is bigger than zero, the last digit to be kept shall be increased by one) or a new value shall be set, which shall not be lower than the result of conversion of the original amount in the litas into the euro.

27. The procedure laid down in this Section shall be applied to all cases of converting the litas into the euro and rounding, unless legal acts lay down otherwise.

28. From the euro adoption date, the euro will become the single legal tender, except for the defined dual circulation period of 15 calendar days, when payments in litas banknotes and coins will also be allowed. This duration of the dual circulation period has been proposed taking into consideration the technical capacity to frontload euros to banks and commercial enterprises and to collect the litas, the practice of the euro area countries in adopting the euro, and the experience of the Republic of Lithuania gained through the re-introduction of the litas. During the dual circulation period, the larger part of litas banknotes and coins will be exchanged into euro banknotes and coins or spent on goods or services.

29. From the euro adoption date, payments at automated selling (goods/services) sites, where inflows are registered and goods/services are sold without a cashier or other staff, will be possible in one currency only, either the euro or the litas. After expiry of the dual circulation period, payments at automated selling sites will be carried out only in the euro.

30. When exchanging litas cash into euro cash, the irrevocably fixed conversion rate between the litas and the euro to be approved by the European Union Council will be applied. From the euro adoption date in the Republic of Lithuania, conversion of litas cash into euro cash and rounding will be carried out in accordance with the provisions of Regulation (EC) No 1103/97.

31. Commercial banks will exchange litas cash into euro cash free of charge 60 calendar days after the euro adoption date, and the Bank of Lithuania – for an unlimited period.

32. In order to ease the transition to the euro as a new measure of value it is recommended to start a voluntary dual display of prices at least six months before the euro adoption date, i.e. after the EU Council makes a decision on the irrevocably fixed conversion rate between the euro and the litas.

33. The period of the mandatory dual display of prices is 120 calendar days before and 120 calendar days after the euro adoption date. The form and means for the dual display of prices shall be selected by the seller of goods or the provider of services. The final price of a product or a service to be paid by the consumer shall be displayed both in the euro and in the litas. Dual display of prices should be easily understandable, non-misleading and should not contain any unnecessary information. 

34. Conversion of prices from the litas into the euro (before the euro adoption date) and from the euro into the litas (after the euro adoption date) and rounding will be carried out in accordance with the provisions of Regulation (EC) No 1103/97.

35. In the period of the mandatory dual display of prices, bills for energy, utilities and maintenance services or payment notices issued to consumers by enterprises supplying energy (electricity, heating, hot and cold water, gas) and providing utilities, also by administrators of multi-storey dwelling houses and partnerships of such houses, will display the payable amounts both in the litas and the euro. In this period, information on the prices of energy and services and the amounts payable will be given, in the litas and the euro, either on the very bills/payment notices or on a separate sheet accompanying such bills/payment notices, at the discretion of the provider of services.

36. Taking into account the practice of the euro area countries, it has been decided to redenominate the nominal value of securities of the Government of the Republic of Lithuania (hereinafter referred to as “GS”) for the blocks of securities held by a particular investor and to set a new nominal value of GS at 1 euro cent per unit. The nominal value of all GS issued in litas will be redenominated by dividing the total nominal value of securities held in each individual account of the particular investor, according to each security issue identification code, by the irrevocably fixed conversion rate, multiplying it by 100 and rounding to the whole figure. The result obtained will represent the number of securities with the nominal value of one euro-cent, held by the given investor. This is a technically simple and transparent method: the redenomination will have the lowest impact on the value of securities; therefore, no additional payments to compensate for the differences that might be created by rounding will be required, in contrast with other methods.

37. The procedure for the redenomination of the nominal value of GS will also be applied to other book-entry debt securities, unless the terms and conditions of the issue of such debt securities provide for another procedure for the redenomination of their nominal value.

38. The nominal value of convertible bonds will be redenominated for each bond individually. Its nominal value will be divided by the irrevocably fixed conversion rate between the euro and the litas and rounded to two decimals, since the rate, at which convertible bonds are exchangeable into shares, has to remain unchanged.

39. The nominal value of equity securities will be redenominated by dividing the total nominal litas value of the issued securities of the same class and of the same nominal value by the irrevocably fixed conversion rate between the euro and the litas and by the number of the issued securities of the same class and of the same nominal value, and rounded to two decimals. The redenominated nominal value of equity securities shall be expressed in the euro at the accuracy of whole euro cents.

40. The value of shareholders’ contributions and stakes will be redenominated for each shareholder’s contribution and stake by applying the irrevocably fixed conversion rate between the euro and the litas.

41. At least six months before the euro adoption date, the Ministry of the Economy of the Republic of Lithuania shall draft a Law regulating the conversion of authorised capital and securities of public and private limited companies into the euro and the procedures for amending their statutes, and will submit it to the Government of the Republic of Lithuania.

42. Amounts payable (receivable) and other amounts specified in tax returns for tax periods beginning as of the euro adoption date, as well as for those tax periods beginning before the euro adoption date and expiring after the euro adoption date, will be given in the euro.

43. From the euro adoption date, tax amounts specified in the agreements between the tax administrator and taxpayers, in inspection reports and in decisions on the approval of inspection reports will be given in the euro, irrespective of the period which such amounts refer to.

44. From the euro adoption date, tax amounts overpaid during any tax period will be refunded to taxpayers in the euro.

45. All taxpayers’ obligations and overpayments in the litas outstanding as of the euro adoption date will be converted on the euro adoption date into the euro at the irrevocably fixed conversion rate between the euro and the litas.

46. At least six months before the euro adoption date, the Minister of Finance will approve, by an Order, new specimen tax stamps for marking cigarettes, on which the maximum retail price of cigarettes will be indicated in the euro. From the euro adoption date, it will not be allowed to sell goods which are already in circulation and on which the maximum retail price is indicated in the litas, at a price in the euro higher than the price obtained by converting the litas price into the euro price at the irrevocably fixed conversion rate.

47. As of the euro adoption date, economic entities will keep records of their economic transactions and operations in the euro. Accounting documents will, as of the euro adoption date, be issued by indicating amounts in the euro.

48. Economic entities, whose financial year coincides with the calendar year, will draw up their financial statements for the year proceeding the euro adoption date, in the litas. On the euro adoption date, assets, liabilities, equity, financing shall be denominated in the euro. Economic entities, whose financial year does not coincide with the calendar year and the last day of the financial year comes after the euro adoption date, will draw up their financial statements in the euro. Such economic entities shall make an inventory of tax accounts as of the euro adoption date. Litas-denominated data of proceeding accounting periods included in financial statements drawn up in the euro shall be converted and indicated in the euro.

49. At least six months before the euro adoption date, the public institution Institute of Accounting of the Republic of Lithuania will prepare the Business Accounting Standard establishing requirements for accounting and financial reporting related to the adoption of the euro.

50. By the euro adoption date, information systems will be adjusted to process data in the euro. It is recommended to make efforts to ensure that the adjustments do not affect the existing functionality of information systems.

51. Before the euro adoption date, public authorities, institutions, enterprises and other organisations shall make the necessary preparations to ensure that the existing business management, accounting, reporting and other information systems are adjusted for payments, accounting and reporting in the euro, and to ensure continuity of operations after the adoption of the euro.

52. Each public authority has been obliged to develop its own internal procedure for the adjustment of its information systems for the adoption of the euro and regularly report to the Information Technology Working Group on the progress of adjustment of information systems.

53. From 2007, public authorities, institutions, enterprises and other organisations carrying out public procurement of information systems shall be obliged to ensure that the information systems being procured can adequately function after the adoption of the euro. All investment projects of procuring or upgrading information systems must be pre-agreed on with the Information Society Development Committee under the Government of the Republic of Lithuania, which shall ensure the fulfilment of the requirement laid down in this paragraph.

54. Within their respective fields of activity, public authorities, institutions, enterprises and other organisations shall prepare, at least five months before the euro adoption date, new requirements and document forms, and inform data providers, consumers and clients on the changes related to the adoption of the euro. The institutions administering forms of statistical reporting documents and amendments thereof as well as managing official statistics shall prepare the procedure for harmonization of statistics, as indicated in paragraph 60 of this Plan. 

55. At the euro adoption date, all balances in assets, liabilities, equity and other amounts denominated in litas shall be converted into the euro; before that, the data in litas have to be saved.

56. Different reporting documents (financial, statistical and other types of reports, declarations, statements, etc.) to be prepared and delivered to public authorities for the period ending before the euro adoption date and, if required, for earlier periods, irrespective of the date of actual delivery, shall be drawn up in the litas, and documents, which contain data compiled after the euro adoption date, shall be drawn up in the euro.

57. It is recommended that as of the euro adoption date any financial calculations/reporting documents in the euro should be performed/drawn up by keeping the algorithms in the information systems unchanged and by using the data that refer to the periods before the euro adoption date as converted into the euro. A public authority transferring the data to another public authority electronically shall not convert the amounts accepted in the litas/euros into the euro/litas.

58. It is recommended that during the preparatory period and after the changeover, data should be provided, if required, in both currencies, intermediate calculations should be made in the litas (before the euro adoption date) or in the euro (after the euro adoption date) and only final amounts should be converted into the other currency.

59. It is recommended that the private sector should review and adapt for the adoption of the euro their business management, accounting and other systems which might be relevant for ensuring a smooth changeover and business continuity after the adoption of the euro.

60. The Department of Statistics under the Government of the Republic of Lithuania (hereinafter referred to as “the Department of Statistics”), the Bank of Lithuania, the Ministry of Finance of the Republic of Lithuania and other public authorities managing the official statistics will adjust the procedures for managing the statistics, develop measures for collecting statistical data, preparing and distributing statistical information, and other measures for the management of statistics. The work will be coordinated by the Department of Statistics. Preparations will be made for publishing statistical information in the euro after the euro adoption date. Historical time series in the litas will be converted to the euro.

The statistics harmonisation procedure will be approved by an Order of the Director General of the Department of Statistics.

61. Tickets of passenger transportation by water, railway and road transport on long-distance, suburban and local routes, the nominal value of which is displayed in the litas, will be valid four months after the euro adoption date.

Air transport tickets, the nominal value of which is displayed in the litas, will be valid six months after the euro adoption date.

62. Postage stamps (postage stamps valid in the Republic of Lithuania, post blocks, stamped envelopes and cards (postcards) and stamp aerogrammes), the nominal value of which is displayed in the litas, will be valid four months after the euro adoption date.

63. Sellers of transport tickets and postage stamps, the value of which is displayed in the litas, will be obliged to inform consumers, within 120 calendar days before the euro adoption date and afterwards, on the validity period of these transport tickets and postage stamps.

64. Municipalities shall make preparations to ensure that the areas operated by them, especially public transport, function smoothly during the changeover. Enterprises founded by municipalities to provide public services are recommended to prepare action plans where special attention should be given to the activities carried out during the dual circulation period.

65. In order to avoid unjustified price increases in public administration and public services sectors ascribed to the competence of municipalities, it is recommended that municipalities should, at least three months before the euro adoption date, review and, if required, amend all contracts with public service providers by inserting a provision that fees charged for public services shall be rounded, at the moment of the euro adoption, to the benefit of the public and that they are not increased.

66. Government representatives in counties shall carry out administrative monitoring of preparations by municipalities for the adoption of the euro.

67. The Bank of Lithuania shall be responsible for timely acquisition of euro banknotes and coins. During the preparatory period, the Bank of Lithuania shall agree with the European Central Bank and the national central bank of that state which will supply the euro banknotes, on the legal and logistics aspects of the acquisition of euro banknotes. A euro banknotes borrowing agreement will be signed with the European Central Bank. Euro coins for the Republic of Lithuania are planned to be minted by the private limited company Lithuanian Mint (hereinafter referred to as “the Lithuanian Mint”). The Lithuanian Mint is prepared to mint Lithuanian euro coins and Lithuanian euro cents; however it will be able to start doing it only after the European Union Council adopts a decision on the euro adoption in the Republic of Lithuania.

68. The Board of the Bank of Lithuania has approved three different plaster models to be used for the national side of euro coins, by Resolution No. 28 of 24 February 2005 On the Approval of Plaster Models of the National (Obverse) Side on Euro Cents and Coins Intended for Circulation. The symbol of the national emblem, the Vytis, surrounded with 12 stars will be depicted on the national side of all denominations of euro coins, along with the inscription Lietuva and the year of issue. The design elements on the national (obverse) side on euro cents and euro coins intended for circulation meet the Commission Recommendations on a common practice for changes to the design of national obverse sides of euro circulation coins and have been agreed on with the European Commission; the images of the national side will be published in the Official Gazette (Valstybės žinios) and the European Union Official Journal.

69. The Bank of Lithuania has drafted a cash changeover plan, which lays down the procedure for the changeover in the Republic of Lithuania at the moment of euro adoption, identifies main participants in the changeover process and their functions, regulates the acquisition and frontloading of euro banknotes and coins and other changeover-related issues.

70. The Bank of Lithuania will be prepared for frontloading of euro banknotes to commercial banks at least one month before the euro adoption date. Having evaluated the demand for euro coins in the Republic of Lithuania and the technically complicated frontloading process of euro coins, the Bank of Lithuania will be prepared for frontloading of euro coins to commercial banks at least three months before the euro adoption date. Preparations for the frontloading of euro banknotes and coins will be carried out in accordance with the Action Plan of the Cash Working Group.

71. As part of implementation of the Action Plan of the Cash Working Group, the Bank of Lithuania will, before frontloading euro banknotes and coins, discuss and agree, with commercial banks, on such issues as the demand for euro banknotes and coins to be frontloaded, the structure of denominations and deadlines for their frontloading. Having assessed the demand for euros to be frontloaded, the Bank of Lithuania will prepare the terms and conditions for the frontloading of euro banknotes and coins to commercial banks and will sign respective agreements. Payments by commercial banks to the Bank of Lithuania for the frontloaded euro banknotes and coins will be made by using the deferred debiting model in accordance with the Euro Frontloading Rules approved by Resolution of the Board of the Bank of Lithuania. The Euro Frontloading Rules have been drafted by taking into account the needs and requests of commercial banks.

72. Commercial banks shall be sufficiently frontloaded with euros so that they can subsequently sub-frontload cash to their customers, first of all, trade and service enterprises and post offices run by the public limited company Lithuanian Post (hereinafter referred to as “the Lithuanian Post”). Euro Frontloading Rules shall serve as the legal basis for sub-frontloading contracts, as they lay down the main terms and conditions as well as requirements for such contracts. It is recommended that payments by Lithuanian trade and service enterprises for the sub-frontloaded euro banknotes and coins shall be made by using the above-mentioned deferred debiting model. The Bank of Lithuania and the Association of Lithuanian Trade Enterprises will coordinate actions to be carried out by Lithuanian trade and service enterprises and commercial banks as part of preparations for sub-frontloading.

73. One of the main cash changeover elements is the withdrawal of litas banknotes and coins from circulation. Given the relatively small quantity of banknotes (about 67 million) in circulation, the current infrastructure of commercial banks and their banknote processing capacities will allow a smooth acceptance and processing of banknotes. Among the features characteristic of Lithuania’s cash turnover is relatively high amounts of coins in circulation – more than 200 coins per capita. One of the solutions to the problem of limited capacity of commercial banks to accept and process litas coins might be the possibility, which is currently being negotiated with trade enterprises, that trade enterprises deliver the withdrawn coins directly to the Bank of Lithuania. It is projected that during the dual circulation period the public will exchange, at commercial banks and trade enterprises, at least 80% of litas in circulation. A smooth exchange of the litas into the euro in regional centres will be ensured by the existing well-developed network of commercial bank branches (about 650 bank offices).

74. People living in small towns and villages, also small entrepreneurs and those town people who will have failed to exchange currency at commercial banks during the free-of-charge exchange period will be able to do it at Lithuanian post offices (950 post offices covering the entire territory of the country).

75. The issue of safety will be addressed in coordination with the working group set up by Order No. 5-V-193 of 27 March 2006 of the Police Commissioner General, in charge of organising police activities with respect to offences and crimes relating to the adoption of the euro in the Republic of Lithuania.

76. Seeking to inform the public and cash handlers on the new currency and to envisage measures for the prevention of counterfeiting, the Bank of Lithuania has developed materials for Cash Handlers’ Training Programme. At the moment, training levels are being adjusted; training material will be selected in accordance with knowledge requirements, professional experience and education. Following the assessment of the number of cash handlers to be trained, it has been decided that the initial stage of the Cash Handlers’ Training Programme will deal with introductory information about peculiarities and security features of euro banknotes and coins, and later stages will be aimed at providing cash handlers with technical information and practical training, to ensure proper consolidation and use of the acquired knowledge.

77. The Bank of Lithuania, in cooperation with commercial banks, shall implement measures aimed at reducing the volume of cash in circulation. It is envisaged to organise campaigns of withdrawal of coins from circulation, to promote the earliest possible withdrawal of coins held by legal and natural persons, and to invite them to participate in various saving programmes.

78. During the dual circulation period, the Cash Changeover Monitoring Group of the Bank of Lithuania will monitor the implementation of the Cash Changeover Plan, i.e. the exchange of litas cash and the withdrawal of the litas from circulation, and promptly deal with any cash-related issues.

79. As of the euro adoption date, the payment system of the Bank of Lithuania will process credit and debit operations and other payments in the euro only.

80. As of the euro adoption date, the Bank of Lithuania will publish, in the Republic of Lithuania, the exchange rates between the euro and the main foreign currencies set by the European Central Bank. The exchange rates between the euro and other foreign currencies will be set and published by the Bank of Lithuania.

81. Commercial banks as well as foreign banks operating in the territory of the Republic of Lithuania (herein referred to as “commercial banks”) shall be fully prepared and adequately adjust their information and other internal systems to be able to properly inform and serve their customers.

82. Commercial banks are recommended to take additional organisational measures during the dual circulation period (i.e. a flexible work schedule, staff for special temporary assignments, etc.) and to encourage their customers to start returning litas coins held by legal and natural persons as early as possible.

83. Commercial banks shall be prepared to meet the demand of legal and natural persons for euro banknotes and coins. As of the euro adoption date, commercial banks shall dispense only euro banknotes and coins and stop dispensing litas banknotes and coins.

84. Commercial banks shall exchange litas into euros free of charge 60 calendar days after the euro adoption date. Upon expiry of this period, commercial banks will be entitled to charge a fee to be fixed by themselves for the exchange of litas into euros.

85. On the euro adoption date, deposits and other amounts in the litas held in all customer accounts with credit institutions shall be converted into the euro free of charge, applying the irrevocably fixed conversion rate between the euro and the litas and complying with the conversion and other requirements established by the European Union legislation.

86. As of the euro adoption date, every reference in legal acts, contracts and other documents to VILIBOR (Vilnius Interbank Offered Rate) shall be read as a reference to EURIBOR (Euro Interbank Offered Rate), except for interest rates on overnight loans. References to the overnight VILIBOR shall be read as references to eonia (Euro Overnight Index Average). Contracts may contain other provisions by agreement between the parties. Where a reference in contracts or other documents to VILIBOR refers to a period that starts before and ends after the euro adoption date, this expression of interest rates shall be used until the end of the period for which it has been calculated, unless the parties agree otherwise.

87. Commercial banks shall thoroughly adjust their ATM infrastructure to dispense euro banknotes and make sure that their ATMs are filled with euro banknotes as from the euro adoption date. Commercial banks shall ensure that the overall structure of denominations of euro banknotes in ATMs is dominated by low denominations.

88. Trade enterprises shall make preparations to be ready to work during the dual circulation period, i.e. to train their personnel accordingly.

89. Pursuant to the principles concerning the dual display of prices laid down in paragraph 33 of this Plan, sellers of goods (providers of services) shall start displaying prices of goods (services) in the litas and the euro at least 120 calendar days before the euro adoption date. During the dual circulation period, the prices displayed in the litas and the euro shall be paid in the currency of the payer’s preference.

90. Conversion of prices shall be performed according to the conversion and rounding rules laid down in paragraph 22 of this Plan; however, the rounding of the final price, i.e. the amount to be actually paid, down to the benefit of a consumer will not be considered a violation of price conversion rules.

During the dual circulation period, sellers of goods and providers of services shall accept payments either in the litas or the euro, but change should be preferably given in the euro only. Consumers will be encouraged to use more often payment cards and electronic payment methods.

91. When payments during the dual circulation period are made in the litas, receipt and expenditure vouchers, cash payment/acceptance vouchers and cash register receipts shall display amounts, where possible, both in the litas and the euro. If prices and other amounts on a cash register receipt are not displayed both in the litas and the euro, it will be considered, as of the euro adoption date, that such prices and other amounts are in the euro.

92. Business organisations will be encouraged to adopt the Code of Good Business Practice (Will); by signing (declaring) it, economic entities will express their commitment:

93. Those trade enterprises, which will publicly declare their commitment to and follow the Code of Good Business Practice (Will), will be authorised to use a special logo of the Code (in advertisements, company attributes, etc.).

101.1. business organisations will be encouraged to adopt the Code of Good Business Practice (Will), by which they will undertake a commitment to convert prices correctly and not to use the euro adoption as a pretext to raise prices and otherwise act against consumer interests;

101.2. the Department of Statistics will monitor changes in retail prices. During the period of the dual display of prices, prices in the litas and the euro will be recorded in accordance with the usual procedure, public authorities concerned and the public will be given statistical information on changes in prices of consumer goods and services by recording prices in the litas and the euro and assessing the impact of price conversion on the overall change in consumer prices. It will also prepare and disseminate information on retail prices of about 50 main uniform goods and services and on their price movements;

101.3. The National Consumer Rights Protection Council under the Ministry of Justice will investigate consumer complaints and establish violations of consumer rights;

101.4. The public will be constantly informed (via internet websites, in the press) about price monitoring results and cases of abuse.

106.1. at the start of the information campaign, the public will be informed on the impact of the single currency on the national economy and the public, on the degree of fulfilment of legal and economic requirements (convergence criteria) by the Republic of Lithuania, and, in general terms, on the euro and the euro area. Information on these subjects will be published in various publications and on the websites of public authorities; this will involve cooperation with TV and radio broadcasters, distribution of publications, meetings of experts with different groups of the public and organisation of various training courses;

106.2. The European Union Council’s decision concerning the abrogation of the derogation and the adoption of the euro in the Republic of Lithuania will mark a start of the most intensive part of the campaign. At this stage, the public will be informed in detail on the euro adoption procedure, legislation of the European Union and the Republic of Lithuania on the euro adoption process, denominations and value of the single currency, security features of the euro, etc. The general public and individual target groups of the public will be informed through different information channels, such as TV, radio, press, outdoor posters; a special information package for all households; a toll-free Euro Hotline; special website; special publications for individual target groups; events, meetings and training courses;

106.3. The public shall be extensively informed on the adoption of the euro even after the changeover. By using the information channels mentioned in paragraph 106.2 of this Plan, it is envisaged to provide the public with comprehensive information about the progress and results of the changeover, further information about euro banknotes and coins and their security features, and to analyse other matters related to the adoption of the euro.

8.1. The most readily appreciated advantages of the adoption of the euro for Lithuanians were the following: no need to change currency while travelling within the European Union (this seemed important to 71.6 percent of the respondents); Lithuania will become a full-fledged member of the European Union (68.1 percent of those interviewed); the euro will facilitate payments between businessmen and their foreign partners (74.2 percent of the interviewed). Less weight was given to the fact that the euro is a reliable and stable currency (59.7 percent of the interviewed) and it will be easier to compare prices across the European Union Member States (62.9 percent of the respondents).

8.2. People very clearly see the biggest concerns related to the adoption of the euro: as much as 91.8 percent of the respondents are concerned about a potential rise in prices, 83.4 percent worry that their savings will depreciate and 69.4 percent are concerned about the loss of national currency in general. Generally, the concerns remain the same as those indicated in the earlier surveys commissioned by the Bank of Lithuania and in the regular Eurobarometer surveys carried out throughout the European Union.

8.3. Lithuanians were quite unanimous in their evaluation of information sources. They would most strongly trust such sources of information regarding the euro as: family members, relatives and acquaintances living in the Members States of the euro area (67.5 percent of the respondents); people from the countries which have recently adopted the euro (63.9 percent); economists (60.1 percent) and the Bank of Lithuania (58.7 percent of those interviewed). The least trustworthy sources were representatives of non-governmental organizations (12.3 percent), members of the Parliament (15.4 percent) and business representatives (16.4 percent of the interviewed). Surprisingly, the press gathered only a scant 26.1 percent.

8.4. Respondents rated the information about the euro in terms of its importance as follows: the most important information is about potential consequences of the euro adoption (88.1 percent), the practical information of the euro changeover (86.2 percent) and consequences of the euro adoption in other countries (71.2 percent).

8.5. The population were unanimous in their evaluation of information media and information channels: as much as 91.6 percent responded that they needed to be informed via television, 79.4 percent believed that information should come via radio, 78.4 percent would like to obtain information through the national press and 65.1 percent through the regional press. People were least interested in the information provided by libraries (22.8 percent).

9.1. Businesses were more positively-inclined towards the euro: 54.3 percent of the respondents were in favour of the single currency; on the other hand, 47.1 percent also welcomed the fact that Lithuania would fail to adopt the euro in 2007. Nevertheless, 32 percent of the respondents said they would like the euro to be introduced as soon as possible; together with those who wanted this to happen in 2009 or 2010, they made up more than 60 percent of the total number of the interviewed.

9.2. Businessmen believed that the adoption of the euro would allow Lithuania to become a truly full-fledged EU Member State. This factor was of concern to as much as 68 percent of the businessmen and was much more important than other factors related to the benefits of the euro adoption. In the context of the whole national economy rather than personal business, this factor was given even more importance: 75.4 percent of the respondents indicated this aspect as important.

9.3. Assessing the disadvantages of the euro adoption, businessmen (only 32.3 percent) indicated, inter alia, a possible rise in prices.

9.4. Most businessmen (as much as 79.5 percent) thought they should participate in the process of the adoption of the euro; of these, 44.4 percent indicated they should participate via business associations. 37 percent of the respondents knew about the Code of Good Business Practice underway for signature and only 27 percent believed that it might prevent price increase.

9.5. According to businessmen, the most trusted sources of information were: economists (70.5 percent of the respondents trusted them), people from the countries which have recently adopted the euro (68.5 percent), the Bank of Lithuania (67.2 percent of the respondents), and business associations (63.5 percent). The least trusted sources were members of the Parliament of the Republic of Lithuania (15.9 percent), emigrants (18.1 percent) and journalists (24.3 percent of those interviewed).

9.6. At present, it is most important for businessmen to get information on possible  consequences of the adoption of the euro (84.6 percent of the respondents), Lithuania’s preparedness (75.9 percent) and the adoption of the euro in other countries (72.5 percent of the interviewed). One year before the adoption of the euro, the most important information for them would be information about potential consequences of the adoption of the euro to business (92.6 percent) and the changeover process(92.3 percent of the respondents).

9.7. Businessmen ranked information media differently than the general public: 88.8 percent of the respondents would prefer to get information via the Internet, 84.9% – by the national press and 83.1 percent – by television.

10.1. After 5 years from the introduction of the euro, the euro was positively evaluated by 48 percent of the population of the euro area Member States. 38 percent considered that the euro created more problems than it gave benefits. 7 percent believed that the new currency changed nothing and 7 percent did not have any opinion on the issue.

10.2. The euro was positively evaluated by as much as 75 percent of the population in Ireland, 65 percent in Finland and 64 per cent in Luxembourg. The lowest percentage (38 percent) of those evaluating the euro positively was in Greece and the Netherlands. The least positive opinion about the euro was recorded in those states where the adoption of the euro coincided with the deceleration of economic growth.

10.3. As much as 81.4 percent of the respondents stated that prices had gone up after the adoption of the euro. Compared to the concern about a rise in prices, other negative changes seemed insignificant. 18.5 percent of the respondents believed that the euro aggravated their everyday life, 7 percent thought that it slowed down the growth of the national economy and increased the rate of unemployment, and 5 percent noted that it undermined the national sovereignty.