Will customers be charged for the conversion of litas held in their bank accounts to euros on the day of euro changeover?
The Law on the Introduction of the Euro in the Republic of Lithuania provides that on the day of the changeover, the amounts of money held in the accounts with all credit institutions and other financial and payment institutions will be translated into euros free of charge in accordance with the conversion rate and the specified requirements.
Will there be a limited exchange amount of the litas to the euro per individual?
Bank subdivisions and Lietuvos paštas may specify a requirement, which has to be displayed in customer service points, stating that those who wish to exchange amounts exceeding 15 thousand litas (Lietuvos paštas may specify a different amount) are required to inform the service point in writing at least 3 working days in advance.
Will bank accounts in litas be closed?
Yes. The bank will automatically close the accounts in litas and open euro accounts with the identical account number.
I have an account in litas and euro. Will one of the accounts, i.e. euro account, remain after 1 January 2015, and will the balance in litas accumulated before 31 December 2014 be translated into euros and transferred from the account in litas to this euro account?
Will the number of the account in litas and that in euro differ?
No. On the changeover day, euro account with a number identical to that of the account in litas will be opened.
Will it be possible to view statements of closed accounts in litas in the Internet Banking System (IBS)?
Yes, the bank will make it possible for its customers to view statements of closed accounts in litas until 1 January 2016.
Will it be possible to view my previously active accounts in litas in the IBS after the closing of accounts?
Will I have to prepare new payment templates?
There will be no need to prepare new payment templates. Having selected one of the templates in litas, you will have to convert previously specified amounts in litas into those in euros and choose the settlement account in euro.
Will direct debit agreements concluded online and periodic payments be made as usual after the automatic conversion of the litas to the euro?
How will the automatic debit withdrawals be processed after the introduction of the euro?
After the changeover day, automatic debit withdrawals will be processed in euros in accordance with terms and conditions provided for in the agreement. The bank will convert the amount withdrawn into euros in accordance with the set conversion rate and rounding rules.
What rate will apply in the conversion of deposits in litas to those in euros? Will it be necessary to conclude new deposit agreements?
Deposits in litas will be automatically converted into euros in accordance with the conversion rate specified by the Council of the European Union: EUR 1 = LTL 3.4528. Introduction of the euro will not affect the validity of agreements; therefore, terms and conditions of the agreements as well as interest rates will remain unchanged, and there will be no need to conclude new agreements.
Will the interest payable on a deposit in litas made in the bank before 31 December 2014 change after 1 January 2015, following the conversion of its balance to euros?
Will the interest payable on a loan in litas taken before 31 December 2014 change after 1 January 2015, following the conversion of its balance to euros?
How will interest rate ceilings change as the Open Credit Fund (ACF) changes its currency from LTL to EUR, because they are different for litas and euro?
Article 12(1) of the Law on the Introduction of the Euro in the Republic of Lithuania provides that all references to VILIBOR are to be regarded as references to the EURIBOR as of the changeover day. This means that VILIBOR will be changed into EURIBOR in all agreements of the ACF.
After the transaction currency changeover to euros, credit agreements in litas concluded with the ACF before 20 November 2012 will be subject to interest rate floor and ceilings that were applicable at that time to credits in euro, i.e. floating interest rate of 3 month EURIBOR+0.1 may not be less than 1 percent and more than 3 percent. Credit agreements in litas concluded with the ACF after 20 November 2012 will remain subject to floating interest rate ceilings applicable at that time, i.e. 3 month EURIBOR+0.1, but not more than 3 percent.
How will terms and conditions of credit agreements change?
Loans in litas will be automatically converted into loans in euros in accordance with the conversion rate fixed by the Council of the European Union for the conversion of the litas to the euro. Terms and conditions as well as financial obligations provided for in the agreement will remain unchanged after the introduction of the euro. From the euro changeover day, references to floating interest rates VILIBOR will be considered references to interest rates EURIBOR of the same term for the period specified in the agreement.