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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Sub-frontloading

  • What is sub-frontloading?
    • Sub-frontloading is a process which allows business entities to buy the euro cash for their business operation needs after 1 January 2023. The sub-frontloading process is managed by the Croatian National Bank in co-operation with banks and the FINA.

      Indirect sub-frontloading is a process by which the bank provides business entities with euro cash before the date of changeover to the euro.

  • What are the forms of sub-frontloading – how, when and where can I acquire the needed euro banknotes and coins?
    • Depending on the size and type of a business entity, there are three types of sub-frontloading for professional groups: 

      STARTER EURO COIN RETAILER KITS 

      If you have no need for banknotes, you will be able to acquire the necessary coins by buying pre-packed starter retailer kits. 

      The retailer kits contain 525 euro coins in total value of 145 euros and 50 cents. The retailer kit price will be 1096.27 kuna, which is the value of the coins recalculated at the fixed conversion rate. 

      Starter euro coin retailer kits will be available from December 01 until December 31, 2022.  

      SIMPLIFIED INDIRECT SUB-FRONTLOADING 

      This type of sub-frontloading is provided to micro businesses, for which you qualify if you employ less than ten people, your annual income and/or total assets do not exceed 15 million kuna, and you hold an account at our bank. 

      Simplified indirect sub-frontloading can provide you with an amount of up to 10,000 euros. Larger amounts or an earlier cash takeover date are handled through the Indirect sub-frontloading process. Za veće iznose primjenjuje se proces Posredne opskrbe – nedostaje dodatak o datumu. 

      You yourself define the denominations in which you wish to withdraw the desired amount, and you can order both banknotes and coins.  

      It is not necessary to make an order or book an appointment – just come to any of our branches between 27/12/2022 and 31/12/2022. 

      At takeover of euros, the business entity's representative will sign the Statement of Simplified Indirect Sub-frontloading to Micro Business Entity. 

      INDIRECT SUB-FRONTLOADING

      This type of sub-frontloading covers all business entities which hold a transaction account at our bank, and which are not micro business entities or are micro businesses that require more than 10,000 euros or an earlier cash takeover date.  

      In the period between 02/10/2022 and 31/10/2022, the business entity's representative will come to the Bank branch to sign the Agreement on Indirect Sub-frontloading of Euro Banknotes and Coins. The Specification – denomination structure of ordered euro cash for all their locations – will be enclosed to the agreement. 

      The date of cash takeover is scheduled in advance, in the period from 02/11/2022 until 24/12/2022. 

      Euros will be available for takeover at: 

      • the Bank's branches performing cash operations – list of branches is at the link: https://www.rba.hr/lokacije-poslovnice-bankomati 

      • the FINA branches (if you have contracted payment services at the FINA branches)  

      • through the FINA GS (if you have contracted the tripartite agreement on valuable shipment handling)

  • What are Starter Euro Coin Kits?
    • Starter euro coin retailer kits contain a specified quantity of various denominations of euro coins with the national side of the Republic of Croatia in a pre-defined value. 

      The retailer kits contain 525 euro coins in total value of 145 euros and 50 cents. The retailer kit price will be 1096.27 kuna, which is the value of the coins recalculated at the fixed conversion rate. 

      Starter euro coin retailer kits will be available from December 01 until December 31, 2022.  

      There are two types of kits: 

      • Kits for business entities contain 525 euro coins of all denominations, in total value of 145.50 euro.

      • Kits for private individuals contain 33 euro coins of all denominations, in total value of 13.28 euro.

  • How will sub-frontloading be performed (in the technical sense), especially for the locations depositing cash to an account at RBA, and where there are no RBA branches? Will sub-frontloading be performed at the FINA branches at which cash is deposited currently?
    • According to the client's wish, all types of sub-frontloading will be facilitated at the FINA branches and at all RBA branches.

  • Will depositing of kuna proceeds be possible after the changeover to the euro?
    • Yes, during the first two weeks it will be possible to deposit proceeds both in the kuna and in the euro.

      Remote locations will be allowed a longer term but the exact number of days has not been defined as yet.

      Follow us – we update our website regularly and you will be notified of everything on time.

  • Will the FINA GS transport the sub-frontloading money free of charge for all locations or only for those using their service?
    • The FINA GS will transport only for the locations for which the service is contracted.

Legal Entities - Transaction Account (IBAN)

Legal Entities – Agreements

Card Business

  • What will happen to my credit card limit and will the interest rate change?
    • Credit card limit in the kuna will be recalculated to the euro at the fixed conversion rate and in keeping with the rules for recalculation and rounding as under the Law on Introduction of the Euro as the Legal Currency in the Republic of Croatia.

      Interest rate will remain the same, i.e. changeover to the euro does not affect the fixed interest rate during the validity period of such interest rate.

  • Will the credit and debit cards for their respective account be changed?
    • No. According to the principle of continuity of agreements and other legal instruments, numbers of accounts and cards as well as any and all conditions and provisions remain unchanged.

      The card user is not required to take any actions.

  • What will dual display for card business include?
    • The period of mandatory dual display begins on the first Monday in September, or on 05/09/2022, and it will end after the expiry of 12 months from the date of changeover to the euro, or on 31 December 2023. 

      In the period of dual display, to the users of its services, the Bank will make available dual display for the following prices and other monetary expressions of value related to card business: 

      • Fee tariffs  

      • At ATMs  

      for cash withdrawals, the offered predefined amounts on the screen

      account balance for account balance requests if available on the screen and printout* 

      *provided the cash is paid to a client whose account is managed by the ATM holder/user  

      • for consumer loans in the kuna which have been granted or in offer prior to the day of changeover to the euro:  

      • total loan amount and amount of instalment or annuity in the repayment plan and in the European Standardised Information Sheet (ESIS) or any other prescribed form whereby a consumer is provided information prior to contracting a loan agreement* 

      *this obligation refers to dual display on the ESIS when contracting a credit card and to dual display on the repayment plan and in the ESIS when contracting a Micro loan

      • in the annual kuna loan balance statement

      • balance of the debt not yet due and of the debt due and outstanding* 

      *in card business, this obligation refers to the annual Micro loan balance statement and the annual outstanding debt balance statement

      According to the rules, before the changeover to the euro as the legal currency, the kuna amount will be followed by the euro amount. After the changeover to the euro as the legal currency, euro amounts will be displayed first, followed by kuna amounts. 

Accepting of cards on POS devices and webshops

Business Entities – Financing

  • How will euro introduction impact existing loan contracts?
    • According to the principle of continuity of legal instruments, existing loan agreements will continue to be in force and effect and require no changes as regards conversion to the euro. 
      As on 01/01/2023, kuna loans and kuna loans with currency clause in the euro will be changed into euro loans automatically. All kuna amounts will be converted into the euro at the fixed conversion rate and repayment will continue in euros.  
      As regards loans contracted at a fixed interest rate throughout the entire repayment period, such interest rate will not undergo change.  
      Concerning loans contracted at a variable interest rate, the parameter at which such a variable interest rate was contracted will not change after changeover to the euro, save for the loans with the parameter pegged to the kuna (NRR (national reference rate), Treasury bond of the Ministry of Finance). After changeover to the euro, the parameter used to calculate the variable interest rate will be the one pegged to the euro, of the respective volume and maturity. 

 

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.