INTRODUCTION OF THE EURO CURRENCY

Kuna to become a thing of the past

INTRODUCTION OF THE EURO CURRENCY

Kuna to become a thing of the past

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Private Individuals

  • How does the law protect consumers in the changeover process?
    • The process of introducing the euro is performed pursuant to the Law on Introduction of the Euro as the Legal Currency in the Republic of Croatia (hereinafter: the Law) which protects consumers and ensures that everyone adheres to the Law.   

      The principle of consumer protection, principle of prohibiting unjustified price increases, principle of contract continuity, principle of efficiency and economy, and principle of transparency and informed awareness are implemented in the process of the euro changeover. 

      The principle of consumer protection stipulates that the consumer shall not be in a more financially disadvantaged position than they would be if the euro was not introduced, and recalculation of prices and other monetary expressions of value is free of charge, at the fixed conversion rate in keeping with the rules of recalculation and rounding as under the Law. 

      The Law guarantees three key principles that protect your interests:  

      1. Principle of continuity of legal instruments   

      • All contracts shall remain in force as they were – because changeover to the euro confers no right to change provisions or to unilateral change or termination, save if this has been set specifically under the contract, law or special regulation.  

      2. Principle of efficiency and economy   

      • introduction of the euro, and all procedures and activities arising therefrom, shall be executed so as to ensure actions that are as simple as possible at the least cost possible

      3. Principle of transparency and informed awareness  

      • information on introduction of the euro shall be clear, comprehensive, available, legible and visible. Therefore, at RBA we prepared helpful materials for you, and all staff is at your disposal to readily provide simple and practical instructions about anything you could wish to know related to the euro.  

      4. Principle of prohibiting unjustified price increases

      • business entities (and all others) are forbidden to make unjustified price increases of goods or services to consumers 

  • How will banks notify their clients on recalculation and impact of the euro changeover on their respective accounts, loans, savings and other services?
    • Not later than by the end of September this year, General Notice will be sent to all our clients. It will provide you with the following information:

      1. date of euro introduction, 

      2. fixed conversion rate,  

      3. that recalculation referring to a contract made on deposit, loan and other monetary expression of value is performed according to the rules of recalculation and rounding as defined in Article 14 of the Law, with detailed information on mathematical rounding rule applied to such recalculation, 

      4. that the person subject to implementation of this Decision will conduct recalculation and rounding on the day of the euro introduction, for deposit, savings and transaction accounts, other payment accounts, payment instruments and other records in the kuna into euro amounts, free of charge and without any change to the unique account number

      5. if applicable, that the client’s kuna payment order which was received before the date of the euro changeover and falls due after the date of the euro changeover, the person subject to implementation of this Decision is obligated to execute such payment in the euro in the amount corresponding to the kuna amount displayed on the payment order at the fixed conversion rate and according to the rules of recalculation and rounding and 

      6. if applicable, on the right of the client holding a separate account in the kuna and in the euro at the person subject to implementation of this Decision before the date of the euro changeover, to close one or more accounts and to transfer the funds in these accounts to any account of your choice at the same person subject to implementation of this Decision free of charge, and that they can exercise this right within 60 days after the €-day, and if they fail to do so, they will continue to pay fees for all their accounts as they have prior to the euro changeover date. 

      In addition to the information from paragraph 1 of this Article, the person subject to implementation of this Decision shall notify the client who is a consumer of the dual display period and of the key information from Article 46 paragraph 2 of the Law, which information will be provided to the consumer in dual display.

      In keeping with statutory regulations, also Individual Notice will be sent to: 

      •  Borrowers of loans in the kuna or euro or with currency clause in the euro 

      • Holders of deposits in the kuna or with currency clause in the euro 

      • Business entities who are borrowers of loans in the kuna or with currency clause in the euro and holders of term deposits in the kuna or with currency clause in the euro   

      • Users of investment and ancillary services (brokerage and custodian services) 

      The Individual Notice will include information on:  

      recalculation, parameter, margin and interest rate, including, if applicable, a new repayment plan in the euro  

      balance of securities and cash funds for trading  
      all potential changes that can arise due to changeover to the euro   

      Private individuals will receive the Individual Notice no later than two weeks before the introduction of the euro. 

  • What is the period of dual price display?  When will it be applied?
    • Dual price display means that prices and other monetary expressions of value will be shown both in the kuna and in the euro.

  • What will dual display of banks show?
    • Below follow the prices and other monetary expressions of value for which the bank will have dual display:  

      • Fee tariffs

      • Account Statements for the Kuna Transaction Account – initial and end account balance and overdraft amount

      • Account balance and overdraft amount or available balance in the account display via the Internet Banking service

      • at ATMs for cash withdrawals, for the offered predefined amounts on the screen and account balance requests

      • for loans in the kuna which have been in offer prior to the day of introduction of the euro – total loan amount and monthly instalment amount in the repayment plan 

      • for existing loans in kuna – balance of the debt not yet due and of the debt due and outstanding in the annual loan statement

      • in the annual kuna deposit statement – deposit balance. 

  • Where can citizens obtain euro coins and banknotes?
    • 1. Coins will be distributed through sale of the Starter Euro Coin Mini Kits

      In the period from 01 December until 31 December 2022, Starter Euro Coin Mini Kits will be available for purchase to private individuals. These kits contain 33 euro coins of all denominations in total value of 13 euro and 28 cents. These coins will have Croatian motifs on the back side.

      Consumers will pay 100.00 kuna for one Starter Euro Coin Mini Kit.

      Per single transaction, the bank can sell you a maximum of 5 Starter Euro Coin Mini Kits.

      Coins from the Starter Euro Coin Mini Kits ARE NOT ALLOWED TO BE USED before 1 January 2023.

      The kits will be available for purchase at banks, and at branches of the FINA and Hrvatska pošta.

      2. Euro banknotes can be withdrawn at ATMs

      From 1 January 2023 at 00:00 hours, ATMs will provide euros only. In the transition period, not all ATMs may be ready to provide euros, but banks will secure a sufficient number of ATMs providing euros.

      Before you head off to an ATM, check on our website whether the actual ATM is active and if not – which is the closest ATM preloaded with the euro.

      Naturally, you can withdraw euro banknotes from your accounts and at teller counters of our branches.

      And the simplest way to pay will be by mobile phone, through our RaiPay application, with cards or through the Internet Banking.

  • Where and how will I be able to exchange the kuna cash into the euro cash?
    • 1. Deposit money to an account

      The simplest way to exchange money is to deposit kuna cash to a bank account and wait for 1 January 2023 when the kuna will changeover to euro automatically.

      2. Exchange cash at banks, post offices and the FINA

      Throughout the year 2023 (from 1 Jan to 31 Dec 2023), it will be possible to exchange kunas to euros free of charge at the fixed exchange rate of 1 euro = 7.53450 kuna at branches of:

      • banks

      • FINA

      • Hrvatska pošta.

  • What is the highest amount of kuna that can be exchanged per one transaction?
    • At teller counters a maximum of 100 banknotes and 100 coins in the kuna can be exchanged per transaction free of charge.

      Quantities of banknotes and coins larger than this may be subject to fees.

  • Which amount requires that the exchange of kuna to euro is announced?
    • Banks, the FINA and Hrvatska pošta will set a cap amount above which announcement for exchange from kuna cash to euro cash will be required – we will notify you of this as soon as the information is available. Follow us!

  • Where will it be possible to exchange kuna cash to euro cash after 31/12/2023?
    • As of 1 January 2024, the Croatian National Bank will exchange kuna cash to euro cash free of charge at the fixed exchange rate, as follows:

      • kuna banknotes – no time limit

      • kuna coins – up to three years from the day of introduction of the euro, that is until 1 January 2026

  • How will we pay utility costs – and what happens to the kuna bills due in 2023?
    • December energy bills will be issued in January 2023 and will be in euros.

      For any bills received in advance and displaying the payment due in the kuna, and payable after the euro introduction, the bank is obligated to execute such payment in the euro in the amount corresponding to the kuna amount displayed on the payment order as recalculated at the fixed exchange rate of conversion.

      The bank will act accordingly until 1 July 2023.

      It is essential to point out that dual display of prices will be in effect from 5 September until 31 December 2022. This means that the end sum on any bill will be both in the kuna and in the euro and showing the fixed exchange rate of conversion.

      Exempt to this rule are:

      • values expressed for electronic communications services paid in advance (prepaid vouchers)

      • values and amounts stated on a payment order issued based on an invoice or another individual act or on the basis of a quoted price

      • values expressed on public pay phone cards

      • values printed on SIM card packaging

  • How will introduction of the euro impact loans, savings and other financial instruments of citizens*?
    • On 1 January 2023 kuna loans will be converted to euro loans automatically, and kuna loans with currency clause in the euro will continue on, in fact, without conversion as nearly all parameters (annuities and instalments) are in euros.

      On 1 January 2023 kuna savings will be converted to euro savings automatically by recalculation at the fixed exchange rate of conversion. Fixed interest rates will not change.

      Banks will send the Individual Notice to private individuals no later than two weeks before the introduction of the euro.

      The Notice will be sent to private individuals who are:

      Borrowers of loans in the kuna or euro or with currency clause in the euro

      • Holders of deposits in the kuna or with currency clause in the euro

      • Users of investment and ancillary services (brokerage and custodian services)

      The Individual Notice will include information on:

      • recalculation

      parameter

      • margin

      interest rate

      • stock data on securities

      • all potential changes that can arise due to changeover to the euro.

  • What will be the exchange rate for loans in USD or CHF?
    • As of the day of introduction of the euro, the HNB will publish the Croatian National Bank’s exchange rate list for the euro against other currencies. A loan in USD or CHF will be paid at the HNB’s middle exchange rate for the euro against these currencies.

  • What will happen with my kuna and giro accounts?
    • Kuna current and giro accounts will turn into current and giro accounts in euros. All amounts in the kuna will be converted into amounts in the euro, and everything else – account number, interest rates for positive account balance and other contract parameters will remain unchanged.

  • What will happen with my FCY account in EUR after 1 January 2023?
    • If you hold a kuna and an FCY account at the same bank, you have the right to close one or more accounts and to transfer the funds in these accounts to any account of your choice at the same bank free of charge within 60 days after the €-day.

  • Will the number (IBAN) of kuna or FCY current and giro accounts change at introduction of the euro?
    • No, the number (IBAN) of kuna current and giro accounts will not change.

  • What will the dual circulation period look like?
    • Two weeks after introduction of the euro, that is from 1 Jan to 14 Jan 2023 (at midnight), will be the period of dual circulation.

      This means that, if paying in cash, you will be able to pay in kunas and any change will be given to you in euros. In this case you will be allowed to give 50 kuna coins at the most.

      However, if objectively the cash recipient (shop or coffee shop, e.g.) cannot return the change in euros, they need not.

      In some situations, in the dual circulation period only euros or only kunas will be used:

      • slot machines

      • amusement gaming machines

      • self-service vending machines

      • ATMs and similar devices disbursing cash will provide euros only

      • exchange offices cannot accept kunas to exchange into other currencies which are not the euro

  • What will happen with the kunas awarded in the Zlatna RBICA loyalty program?
    • The kuna amount in the RBA card awarded throught the Zlatna RBICA loyalty programme will be converted by the Bank automatically, free of charge, at the fixed conversion rate in keeping with the rules of recalculation and rounding as under the Law on Introduction of the Euro.

 

If you have any other questions, do not hesitate to contact us. We are here for you and will try to answer all of them as soon as we can. 

You can reach us at info@rba.hr, by calling 072 62 62 62, at our 62 branches across Croatia, via direct message on social networks or by postal service at Magazinska cesta 69, Zagreb.

Also, the Croatian National Bank launched their euro-related website, www.euro.hr. There you can find details and news about the introduction of the euro.