Government Adopts Euro Bill

According to Bajuk, the document deals with the procedure of substituting the euro for the tolar, sets the period when both currencies will be in circulation and the withdrawal of the tolar from circulation.

The bill, which is in line with European Central Bank (ECB) directives, will serve as a legal basis for a smooth transition from the tolar to the euro in the public administration, judiciary, financial market and economy.

For the first two weeks of 2007 both currencies will be in circulation. During this period the difference for cash payments will be returned in euros. Cash-free transactions will be carried out in euros from 1st January 2007. Moreover, the main interest rate SITIBOR will be replaced by EUROBOR. Tolar deposit accounts, securities, contracts, bills and other financial instruments will be transformed into euros on the day of the switch free of charge.

The bill also sets a 60-day period from the switch during which banks, savings banks and post offices will have to exchange tolars for euros free of charge.

Slovenia's central bank Banka Slovenije will change tolar banknotes for euros indefinitely and without commission, it is only expected to exchange tolar coins until 31 December 2016.

Furthermore, the bill defines the rounding off in calculating the tolars into euros and prescribes fines for not meeting the bill's regulations.

The document also sets down that the single currency will be written as "euro" in Slovenia, although the country had previously secured a guarantee for using "evro" in national documents.