Seimas establishes euro adoption procedures in Lithuania

On Thursday, by adopting the Law on the Euro Adoption, as well as secondary legislation, the Parliament of Lithuania (Seimas) has established the legal basis to introduce the new currency in Lithuania.

The Law on the Euro Adoption was passed by an absolute majority of vote.Preparation procedures for the euro adoption, exchange of Lithuanian litas to the euro, withdrawal of the national currency from circulation as well as other aspects of introduction of the new currency were determined.

Now Lithuania has to wait for the Convergence Report to be issued by the European Commission and the European Central Bank in early June. The Convergence Reports examine whether the Member States satisfy the necessary conditions to adopt the single currency.

The Bank of Lithuania will exchange litas to the euro free of charge for the unlimited period of time. Lithuanian commercial banks as well as branches of foreign banks will carry out the same operation for 6 months after the adoption.Lithuania Post will also exchange litas to the euro for 60 days after the adoption.

Lithuania seeks to introduce the euro on 1 January 2015.