Euro changeover in Latvia

Euro changeover

in Latvia

Rīga, August 2014

The content

1. Macroeconomical background

2. Technical preparation, including euro communication

3. Changeover conclusions

Macroeconomical background

Latvia – one of the hardest hit countries in the economic crisis of 2009

Euro target – crisis exit strategy

2008Agreement on the International Loan

Programme

2011Completion of the International Loan

Programme

Correction of economicimbalances

Support from domestic and international community

Fall in external demand

Restoredfiscal viability

Return of economic growth in 2010

Credit rating upgrade

Socialprotectionmeasures forthe mostvulnerable

Fiscal consolidation and structural reforms underpin competitiveness

21% contraction of GDP, frontloaded fiscaladjustment 17% of GDP

Impact of the crisis

Internal devaluation

Outcome of the crisis

Access to financial markets closed

Return to financial markets

EURO – key driving force for change

• EURO = crisis exit strategy

• EURO = key driving force:

› to put Latvian economy on solid ground › to implement structural reforms

Property boom led Latvia to crisis starting 2008, while now the growth is based on a healthy economic foundation and fiscal discipline.

In the third quarter 2013 economic growth in Latvia still was the fastest in the EU

Data: Eurostat

GDP growth flash estimate in Q3 2013, % (seasonally adjusted data )

-1,0-0,7 -0,6 -0,6 -0,4

0,4 0,5 0,5 0,5 0,6 0,7 0,7 0,9 1,1 1,11,5

1,8 1,9 2,0 2,2

4,14,5

Core inflation has remained low for an extended period of time

Consumer Price Index (CPI), annual growth, contributions, %

Data source: CSB

Unemployment keeps declining and is now below the Eurozone average

Registered unemployment & job seeker rate, %

Data source: CSB, State Employment Agency

Latvia's credit ratings have been upgraded and currently have positive outlooks

Latvia’s sovereign rating on long-term foreign currency debt

Fiscal targets have been constantly outperformed and we are committed to achieve more...

Fiscal Targets and Results

-2,5-1,9

-0,8-0,3

-0,9 -0,9 -0,8

2009 2010 2011 2012 2013 2014 2015 2016

Actual

Initial target 2009

Target 2011

Target 2012

Target 2013

2014Joining

Eurozone

- 3%- 3%

Latvia in the euro area – what can be expected from the new member?

a silent partner?

focused exclusively on its short term gains/loses?

indifferent to common problems ?

cold to acts of solidarity? no

strong advocate to respect adopted rules?

believers to fiscal discipline? yes

ally towards closer integration in EMU? yes

The euro is not a “magic wand” for all economic difficulties, but an instrument which can be used to contribute to the

growth of economic potential.

Technical preparation, including euro communication

Euro Coordination Council

Steering Committee

Euro Bureau

StateAdministrationWorking Group

Money and Payment Systems

Working Group

FinancialSystem

Working Group

Non-financial Corporation

and Consumer Working Group

Public Awareness and

Communication Working Group

National law and

IT systems

Cash and non-cash

changeover

Financial andcapital

markets

Fare pricedisplay

Informing andeducating

T A S K S

Established in 2005 to coordinate the process of the introduction of

the euro

Merchants: cash registers,

price display, etc.Communica-tors

Inhabitants:librarians,

info centersAccountingand taxes

Risksassessment

Professional expert grouping

IT registry

Municipalities

Latvia's National Euro Changeover Plan and regular progress reports

- In total the Cabinet of Ministers has approved 25 regular progress reports and on 18 June 2014 there was held the final (the 44th) meeting of the Steering Committee.

- Both the Plan and progress reports are publicly available at the eiro.lv. The Plan is available in Latvian, English and Russian languages.

The Latvia's National Euro Changeover Plan was drafted in 2005, and its first edition was approved on 26 March 2006.

Until April 2013 the Plan has been updated five times

The main stages18.07.2005-01.01.2012

01.01.2012-09.07.2013

09.07.2013-09.12.2013

09.12.2013-14.01.2014

Final stage

SUPERVISIONINTENSIVE

SUPERVISIONSUPERVISION

- Planning- Euro paymentsystems- Price monitoring (06.2006-09.2008)- Developed eiro.lv- Established the communication strategy

- National law adjustment concept and the Euro Law- Seminars- Establishing cooperation network with NGOs and municipalities- IT systems- Cost estimates

- Intensive communication stage- Initiative «Fair euro introducer»- Cash logistics- IT testing phase and development of technical infrastructure

- Starter kits andsub-frontloading- New Year's night transition period: ATM, POS, cash registers and cash systems, internetbanking, IT systems

- Final public survey- Until 30.06.2014 euro info line services- Until the end of 2014 price monitoring continues- Accounting and re-denomination of equity capital stockissues

Cash changeover

Cash changeover map:- Geographic proximity*: all banks,

in regions – 302 post offices- Security- Effectiveness and cost efficiency

* In places, where is no changover point, average distance to the nearest changover point is 10 km

Cash changeover:- Until 31 March at 302 post offices- Until 30 June in all commercial banks- Unlimited time period at the Bank of

Latvia

Security

– Security action plan was developed already in 2012.

– Plan provides the measures enhancing the safety of inhabitants,retailers and cash transport by Cash-in-transit sector duringchangeover period.

– The capacity of the State police has been substantiallystrengthen.

Action plan for bad weather conditions– Signed cooperation agreement with the Latvian State Roads – special road maintenance at the request of the State police Operational Command center

– Development of tactic in case of evacuation need of transported cash (as example – use of State Border Guard helicopter)

Euro introduction costs

• Article 5 Euro Law on the Procedure for the Introduction of Euro and one of core principles of the euro introduction –

• All agents shall have the responsibility for the euro implementation costs, while the government budget shall have the responsibility for the costs of the institutions financed from the state budget.

Public sector costs

12.5 million euro in total –• 5.5 – IT systems• 2.2 – cash changeover at post offices in rural areas • 1.7 – communication campaign• 2.3 – additional security costs• 0.5 – price monitoring and other activities related to non-financial sector• 0.2 – strengthen capacity for legal acts adjustments

Public sector costs

• More than 90% of IT costs are financed by the European Regional Development Fund;

• 50% of communication costs are co-financed by the European Commission.

Total euro introduction costs

• According to the research from the National Central Bank of Slovakia there are average euro introduction costs from 0.3 up to 0.8% from the GDP (March 2006)

• According to the research from the Bank of Latvia the total cost of the euro introduction in Latvia might be assessed among 110-219 million EUR (September 2012)

Technical preparation: State administration working group

Structure of the State Administration Working Group

Chairman: Ms Arina AndreičikaMinistry of Finance

Head of the Euro Bureau

Accounting sub-groupleads by the MoF

Statistics sub-groupLeads by the CSB

IT ad hoc sub-groupleads by the ICT line ministry in

cooperation with E&Y Baltic

Members:Representatives from all ministries, the Bank of Latvia, Latvian Post, Latvian

association of local and regional governments and the Treasury

The main aims and tasks

- Adjustment of national law related to the introduction of the euro

- Adjustment of statistics, accounting and other state information systems for the introduction of the euro

- Development of practical guidelines for companies regarding accounting, tax issues, cash registers, statistics, post stamps, gift cards, etc.

- Monitoring and assisting local governments transition to the euro

The Law on the Procedure for Introducing the Euro

- Has been drafted in coordination with the ECB

- Establishes clear legal framework

- Outlines basic principles for the transition of cash and non cash transactions and revaluations, including, but not limited to: the parallel circulation period of lats and euro, dual price display, accounting, tax payments and credit record treatment, financial market treatments, and enforcement

The preparatory works monitoring at the municipal level

- Legal acts adjustment until 1 December 2013

- IT systems adjustment time planning in accordance with the Changeover Plan

- Municipal companies' IT readiness, application to «Fair Euro Introducer» and equity capital stock redenomination

- Regional seminars

The main stages

18.07.2005-01.01.2012

01.01.2012-31.01.2013

31.01.2013-09.12.2013

09.12.2013-14.01.2014

Final stage

- Planning- Drafting the list of IT systems and cost assessment

- Drafting the Law on the Procedure for Introduction of the Euro - Development of practical guidelines

- Adjusting national law- Adjusting IT systems- Localgovernmentmonitoring

- Detailed daily supervision of IT systems and cash registers of the different merchant areas

- Accounting and redenomination of equity capital stock issues

- Professional seminars have been organised in Riga and regions

The main accomplishments

Adjustment of national law. In cooperation with the Ministry of Justice, State Chancellery and the Ministry of Environmental Protection and Regional Development (MEPRD)

- 113 laws- 603 rules of the Cabinet of Ministers- 1504 local government binding rules

Adjustment of IT systems. In cooperation with MEPRD and E&Y Baltic- 106 state IT systems- 463 local government IT systems- Particular cooperation with IT developers – FMS, ZZ Dats and Exigen Services Latvia

Money and Payment System Working Group

A. Ruselis

Head of MPSWG

Vice president of the Bank of Latvia

Money and Payment System Working

Group (MPSWG) structure

leads by the vice president of the Bank of Latvia

Security sub-group

leads by the Ministry of

Interior

Frontloading and Sub-

frontloading sub-group

leads by the Bank of Latvia

SEPA sub-group

leads by the Bank of Latvia

65 working group and sub-group meetings since establishment

of MPSWG (in 2005)

MPSWG members:

Bank of Latvia, the Ministry of Transport, Latvian Post, the Ministry of Interior,

The Treasury, Central Depository, the Association of Commercial Banks of Latvia

MPSWG main activities

• Issues of the introduction of the euro cash and non-cash payments Logistics of the euro coins and banknotes

Management of the euro frontloading and sub-frontloading

Adjustment of the payment systems to the euro

Withdrawal of lats from the circulation

Management of the security activities regarding the introduction of the euro

Risk management

• Participation in the euro communication activities Participation in seminars and other communication activitities regarding the euro

• Participation in developing legislative framework Proposals to improve the process of the introduction of euro

Close cooperation with other Steering Committee working groups

• Other activities in terms of MPSWG competence

The main stages

Management of

the euro

frontloading and

sub-frontloading

Logistics of the

euro coins and

banknotes

sub-frontloading

to retail chains

Detailed supervision

regarding

adjustments in

payment systems

01.01.2006 -

01.12.2013

01.01.2012 -

31.12.2013

01.08. 2013 -

31.12.201309.12.2013 -

14.01.2014

01.01.2013 -

31.12.2013

Adjustmement

of ATM and

other devices

01.11.2004 – 31.12.2013

Activities regarding large value payment systems, ACH, direct debit and cards infrastructure

adjustments to the euro.

Readiness to participate in Target2 since 11.2007.

Detailed supervision over

the euro payment introduction

• Drafting and managing MPSWG detailed plan

covered time period from 9 December 2013 until 14 January 2014

more than 500 activities

Involves the Bank of Latvia, the Treasury, Latvian Post, 22 banks, other participants

of the payment system and the State Police

• Comprehensive and early communication with all institutions involved in MPSWG

and in the Euro project

• Early response and identification of the problems

Preparations for the cash changeover

• 400 million euro coins bearing Latvian national sides and 110 million

euro banknotes of various denominations were required for the

changeover.

• The delivery started in July 2013 and the final batch will be delivered in

March 2014.

• Frontloading to the credit institutions started on 1 November and sub-

frontloading to the non-financial sector – on 10 December.

Starter kit for general public

• Available to general

public via all commercial

banks, 302 post offices

and Bank of Latvia as

from 10 December 2013

• Value – 10 LVL (14.23

• Prepared 800 thousand

pieces; were sold till 31

December – 644

thousand pieces

Starter kit for business

• Available as from 10

December up to 28

Decembers 2013

• Value – 140.56 LVL (200

• Some banks and CIT

companies formed their own

starter kits

• Sold 70 000 pieces

Interbank payments

02.01.2014

until 08.45*

Card payments

Without interruption

I-bank and

on-us payments

01.01.2014

until 12:00

Main MSPWG objective – to ensure fast

recovery of financial services

01.01.2014

until 01.00*

* Maximum time of interruption in the most important banks, in terms of amount of customers

FINANCIAL SYSTEM

WORKING GROUP

Pēters Putniņš,

Deputy Chairman of the Financial and Capital

Market Commission (FCMC),

Head of the Financial System Working Group

LATVIJAS REPUBLIKAS

EKONOMIKAS MINISTRIJAMINISTRY OF ECONOMICS OF THE REPUBLIC OF LATVIA

Non-financial Corporation and Consumer Working Group'seuro introduction activities

Zaiga Liepiņa, Deputy State secretary of the Ministry of

Economics

LATVIJAS REPUBLIKAS EKONOMIKAS MINISTRIJAMINISTRY OF ECONOMICS OF THE REPUBLIC OF LATVIA 51

NCCWG members and competence

Employers' Confederation of Latvia , Latvian Chamber of Commerce and Industry, Latvian Food retailers association, Latvian Traders Association, Latvian Fuel Traders Association,

Consumer Rights Protection Centre, Latvian National Association for Consumer Protection, Investment and Development Agency of Latvia, Competition Council, Ministry of

Environmental Protection and Regional Development, Bank of Latvia

Ministry of Economics

Competence:

Price monitoring

Goods, services price display control

Initiative «Fair euro introducer»

Professional seminars for entrepreneurs

For a first time from June 2006 to September 2008

From January 2013 to December 2014

120 goods and services

More than 400 retail un service spots in whole Latvia

In one day

From October to March – 4 times a month

Information www.em.gov.lv

Price monitoring

On average in whole observational period 4,52% of prices have

increased, but 4,9 % of prices have decreased

On average 90,43% of prices have stayed the same

Price fluctuation mainly can be explained with seasonality, and raw

material price increase

Bank of Latvia, Ministry of Economics, Consumer Rights Protection

Centre (CRPC) and Competition Council are following these results

Main observations from price monitoring:

Results of price monitoring

(mothly - March to September 2013)

86% 90,5% 85% 86% 83,3% 86,92% 85%

6%4,5%

6% 8% 9,3% 4,51% 9%8% 5% 9% 6% 7,4% 8,57% 6%

March April May June July August September

decresed

increased

Fixed price

Results of price monitoring

(weekly from October 2013 till January 2014)

93,53%

95% 97%83,23%

95,19%

95,37%95,30%

95,80%

95,90%96,20%

91,20%

95,50%92,70%

7%2,51%

2% 0,80%7,34%

1,71%2,53%

2,40%2,80%

9%4,06% 3% 2,20%

9,43%3,10%2,10%1,70%1,80% 1,40%2,10% 1,60%

5,00%2,40%3,70%

Oct.01 Oct.02 Oct.03 Oct.04 Nov.01 Nov.02 Nov.03 Nov.04 Dec.01 Dec.02 Dec.03 Dec.04 Jan.01 Jan.02 Jan.03

Price decreased Price inreased Fixed price

Inspections are carried out by:

CRPC inspectors(15 000 inspections)

Latvian National Association for Consumer

Protection (signed cooperation

agreement, 13 000 inspections)

In addition to daily duties:

Food and Veterinary Service inspectors

State Revenue Service inspectors

Price display control

10 787 inspections and 3306 violations dedected (33%)

Most common violations – prices are not displayed in both currencies,

incorrect convertion

Out of 3131 cases in 2405 cases or in 77% of overall cases violations are

corrected:

46% already during inspection

31% entrepreneurs submited proof that violations are corrected

Results (on 01.12.2013.):

CRPC initiated 22 cases in accordence with Administrative

Violations Code (AVC)

7 AVC decisions to impose penalty

3 AVC cases closed with verbal admonishment

List with punished enterprises available at CRPC home page

Administrative cases:

LATVIJAS REPUBLIKAS EKONOMIKAS MINISTRIJAMINISTRY OF ECONOMICS OF THE REPUBLIC OF LATVIA

The BUSINESS initiative

«FAIR EURO INTRODUCER»

Time: July 2013 - June 2014

Goals and principles of Memorandum

Timeline and preparatory work

Application for Memorandum

Promoting of participation and other supporting activities

Practical recommendations

Content:

Honest and transparent implementation of the

euro in Latvia

Protection against unjustified price increase as

a result of the introduction of the euro

Including business as proactive and equal

partners in strengthening consumer confidence

Target number – 5 000 merchants or 30 000

points of sale

Message:

Joining “Fair euro introducer” = confirmation of

fair and responsible business practice

GOAL & MESSAGE:

1. do not use the introduction of the euro for price

increase;

2. indicate clear prices in lats and in euros;

3. provide fair recalculation of prices from lats to euros;

4. facilitate participation in Memorandum of partners,

suppliers and customers;

5. train and inform employees on matters related to

introduction of euro.

Memorandum – 5 principles

Timeline 2013

Mar-Apr May June July Aug Sept Oct Nov DecBest practice study

(experience of Estonia, Slovakia)

1.-7.07. public

consultations and

amendments to

Memorandum

From 5.08.

– sending

invitation

letters to

business

9.09-13.10. advertising

campaign for business

1.03. - starts

tender for public

procurement

24.05. signing

of public

procurement

contract

6.06. first draft

Memorandum

12.07. final

memorandum

published,

ceremony of

signing of the

Memorandum

3.10.-18.10.

advertising

campaign

consumers

(TV&radio

spots)

Negotiations

with NGOs,

preparations

for the official

ceremony

17.07. start of the

Memorandum

signing process

through webpage

12.07.2013.-30.06.2014. – administration of applications, euro seminars (~700

participants), regular press releases on amount of subscribers, maintenance of

webpage, supervision, reminders for business

Memorandum – preparation and public discussions with NGO’s

Legal support – sworn advocate Jānis Jurkāns (“Cers

un Jurkāns”)

Partners - 8 business associations and organisations: Latvian Chamber of Commerce and Industry

Employer`s Confederation of Latvia

Association of Commercial Banks of Latvia

Latvian Retailers association

Latvian Leasing Providers Association

Latvian Agricultural Cooperatives Association

Latvian Food retailers association

Latvian Fuel Traders Association

Cooperation with “Latvijas Pasts” un “Lursoft”

Preparation of Memorandum

12th July 2013, with participation of high state officials and popular

entrepreneurs:

Prime minister Mr. V.Dombrovskis

Minister of Economics Mr. D.Pavļuts

Minister of Finance Mr. A.Vilks

8 business associations

~ 50 entrepreneurs received

first stickers

Huge interest of mass media

Participation at ceremony

Press conference and press release

Letter of gratitude signed by Minister of Economics and photo for

each participant.

Ceremony of signing:

The most convenient for every company:

Electronic applications - www.godigs.lv ;

Possibility to fill in application at offices of partner NGOs in biggest

cities of Latvia and Ministry of Economics => paper application;

Possibility to sign Memorandum and fill in application during

regional seminars and special events;

Application form can be sent by email;

Application form can be sent by post.

Application for Memorandum

Authentication system:

Electronic signature, electronic ID or bank account verification –automatic verification if the company is registered and if the person filling application has official signature rights in name of company;

Instructions to the user

Downloadable entry form

Affirmation of participation after application is completed (can be downloaded or printed and used for representative purposes);

Most popular application form - 75% of applications received electronically.

Electronic application:

List of participants of Memorandum available publicly on project web page;

Stickers with official logo for businesses (free of charge) – by post (Latvijas Pasts), at Ministry of

Economics, offices of partner organizations (number of stickers according to number of points of sale);

Banners and other visual materials to be used online, in cashier receipts, product packaging, stamps etc.;

All other initiative-related information on official web-site www.godigs.lv

Recognition of participants

Personal invitations to companies and NGOs:

~ 30 000 paper letters sent by post (Latvijas Pasts)

~ 7000 e-mail invitations (Lursoft)

~ invitations for 60 business organisations and associations

Regional seminars (5 regional Eurodays, seminars organised by MoF, MoEand Bank of Latvia);

Information to 350 delegates of congress of Latvian Association of Local and Regional Governments

Regular presentations for industry associations (especially agriculture)

Special invitations for enterprises with state owned shares;

Advertising of initiative in Post subscription catalogue (300 000 copies);

Media campaign for consumers (TV and radio spots) and companies (internet, press).

Promoting participation in the initiative

Regional informative seminars

5 cities – as part of informative

event “EURO DAY”

Close cooperation with partner organisations to invite businesses

Cooperation with municipalities

Meeting/discussion with high

level state officials

Sharing business experience

Macroeconomic insight

Management of change and reputation

Practical advice and guidelines

for euro changeover

Co-ordinated by Ministry of Finance

Part 1. Target audience: business that supplies goods or services to consumers directly or indirectly. September 2013 – October 2013 (print)

Part 2. Target audience: consumers – informing about the campaign and its’ identification signs and encouraging consumers to shop at merchants who have joined the memorandum. 2 September – 13 December (print, TV)

Advertising campaign

http://www.youtube.com/watch?v=qeKssaEG77U

Video:

Media relations

Standpoint articles of entrepreneurs and business associations in central

and regional media

Interviews with participants of initiative in central and regional media

Press releases at least once a week (statistics, joined industries, views of

entrepreneurs, motivation to participate)

Materials for distribution

Posters (Latvijas Pasts, supermarket chains, municipality information

centres, business incubators, etc.)

Brochure (regional seminars, municipalities)

Visual materials

Video with explanation and advice on using the initiative for improving

business reputation

Promoting participation in initiative – other supporting activities:

Media attitude – mostly positive/neutral

Communication by businesses – partners, employees, media

Media interest regarding businesses who have joined the Memorandum, especially in regions

More than 160 publications about initiative «Fair Euro Introducer» (until 7th January 2014).

Publicity of initiative:

1 224 companies, more than 11 000 points of sale

5 biggest retail chains

84 % of banking sector

Providers of public utilities

Health service providers and pharmacies

Important fuel retailers

Private persons – performers of

commercial activity

The Association of Hotels and

Restaurants of Latvia (~250 enterprises)

Members

What to take into account?

The public attitude towards euro (confidence in politics, government, political and economic situation in the country, trust in business ethics and fairness)

The media attitude towards the euro

The host organizations and professional associations attitude to the subject (it should be formulated in advance);

The usual activity (or inactivity) of business participating in self-regulatory activities

Practical recommendations (1):

How to organise?

Support and participation from business organisations from very

beginning

Set up high goals for number of participants and the target

audience

Keep all activities in one organisation – practical implementation, advertising, communication, etc.

Ensure high level of coordination of activities

PR support crucial to make fair pricing agreement well known and popular

Easy and convenient ways for companies to sign the agreement

Think on ways how to make signing of agreement alluring for

businesses (reputation, «free advertising», special newsletters on euro from government institutions, etc.).

Practical recommendations (2):

Technical preparation: Public awareness and communication working group

Communication WG (established in 2005)

- In year 2008 established the web page www.eiro.lv- In year 2010 with colleagues from Belgium's MoF and Central Bank PACWG participates in

twinning project, where initial Communication Strategy for the Euro Changeover in Latviawas drafted. The Strategy covers communication messages, focus gropus and three stages are defined:

From January 2012 to July 2013 – preparation stageFrom July 2013 to January 2014 – intensive stageFrom January 2014 to december 2014 – final stage

Communication professionals from all ministries, Parliament, FCMC, Bank of Latvia, Latvian Institute, CRPC, Latvian Post, Latvian Tourism Development Agency, etc.

Two sub-groups: for organising regional forums and for work with international media

Goals:

• 90% of Latvians feel informed enough for the practical aspects of the implementation of euro

• 60% of Latvians support the implementation of euro

Target audiences

• Households – socially and economically active

• Tourists

• Children and students

Socially vulnerable groups

• Retirees

• People with special needs

• People hard to reach

• Prisoners

• Ethnic minorities

• Unemployed persons

• Municipalities, the government

• Librarians

• The employees of the Latvian Post

• Bankers

• Entrepreneurs and their employees

• NGO

Public and private sector

General audience

A language that everyone understands

All over thecountry

Easy to understand

Cost-effective

- Focus on regions- People living outside urban areas- PrisonersEtc.

- Mass media- Direct mail to hoseholds- Places where people are dealing with money: banks, stores, markets etc.- The basic necessities- Partners

- Informative materal for visually impaired individuals- Brochure for retirees- Informative material for socially vulnerable individuals- Brochure for tourists – in Englishu.c.

Common message:

EURO. LATVIA GROWS.

Communication:

360°• Media relations and events

• Mass media

• Social media

• Seminars and discussions

• www.eiro.lv

• Opinion leaders

• Information multipliers

Support from European Commision:

360°• Partnership agreement

• Communication with vulnerable groups

• Exhibition

Direct mail to householdsRegionaly adjusted + RUS version

(16 pages, 10 with identical information + 6 regionalyadapted)

• All practical information

• Interviews with opinion leaders – both national and regional

• Interviews with salespersons, postmen (people like me)

• FAQ about euro and answers

• Short historical overview

• Infographics, practical advice

Information materials• General information

• Handbook for enterpreneurs – practical

guidelines

• Infographics

Information: • in stores, banks, post offices etc.• in materials for clients• for employees• on FMCG products• and many more

Involving enterpreneurs in euro communication

Materials were distributed in:• seminars,• Eurodays, • euro

exhibitions,• media events,• local gov.,• associations,• senior

associations, • libraries,• society of the

blind people,• post offices,• Latvian Railway,• supermarkets, • companies,• electronically

~2 mill. informative materialsInformative material Amount Description

Household consignment 1252400 Informative brochure to all households which is adjusted to certain region

Brochure about security 300000 Security advices in cooperation with the State Police

Pensions (broadsheet) 140000 Information about changes in pension payment schedule; security; process of the introduction of euro

Europeace guide 120000 Advices to entrepreneurs in cooperation with Association of Commercial Banks of Latvia

Stickers with official currency rate 50000 Stickers with official currency rate and informative phone number

Stickers «Fair euro introducer» 46000 Sticker with inscription «Fair euro introducer», from both sides

Brochure «What trader must know about the dual price display»

18000 Main information and demands regarding dual price display

Broadsheets – diplomas for traveling exhibition 15000 Diploma (with commemorative coin) for traveling exhibition

Brochure «Important about euro» 15000 Summary of practical information - what is euro; introduction; currency rate; timetable, etc.

Equity capital stock (infograf) 11000 How and when to do denomination of equity capital stock

Trader’s journal 5000 Journal about practical euro information for entrepreneurs and trades

Practical guidelines brochure 4000 Practical guidelines in areas of accounting, tax payment, cash registers, dual price display, costumerrights, etc.

Brochure «Competition Council about the cartels and other forbidden deals»

3000 Forbidden deals, action, punishment, how to decrease risks, etc. LV and RUS

Brochures «Fair euro introducer» 2000 Information about campaign’s objective, memorandum, gains and how to join

Posters "Fair euro introducer" 1000 Poster about gains from participation and information for consumers

10 Euro advices E-version 10 advices, what to do, to ensure transition to euro safe, easy and comfortable

Infograf – shopping in lats during first twoweeks

E-version Shopping during the period of parallel circulation of lats and euro

Infograf – be prepared for the introduction ofeuro on time

E-version Timetable, how to prepare for the introduction of euro

Brochure for foreign guests 20000 Most important information about the euro introduction in 4 languages

Brochure for disabled persons 5000 Most important information about the euro introduction for disabled persons

>30 000 seminar participantsEuro working group seminars

- In year 2013 245 seminars in 50 cities and villages

- 28159 participants in whole Latvia (15 000 inhabitants, 6500 entrepreneurs and 6000 state and local government employees)

- Last professional seminar in Riga – 20 December 2013Webinar - Association of Commercial Banks of Latvia (ACBL) big euro

webinar on september 25 with participation of 15 experts in latvian and russian languages – 530 online viewers, more than 4500 offline viewers and amount is increasing.

- ACBL and Latvian Chamber of Commerce and Industryorganised euro seminar/webinar for entrepreneurs

Other seminars

- Bank of Latvia, Employers' Confederation of Latvia , MoE seminr cycle in 28 cities with 2200 participants and other seminars

>40 000 participants

Event Notes

Eurodays - In 5 Eurodays participated more than 10’000 people (Ventspils –700, Liepāja – 2300, Daugavpils – 1800, Jelgava – 3100, Valmiera –2200)

- In „Fair euro introducer” seminars registered 250 participants (+ 300 online viewers)

- Euroday test in all four cities filled 1589 Euroday visitorsEuroexhibition

- In EC exhibition «Eiro – our currency» Rīga – 2806 visitors, Daugavpils – 6620, Liepāja (open until January 12) – 4000

- ECB/Bank of Latvia euro exhibition in theater «Daile» – more than 16’500 visitors

Eight stories about the eurofor children and youth audience• To inform teachers and school children, the

Ministry of Education and Science distributed to all schools an information brochure for teachers and produced cartoons to be introduced in the schools’ curricula

Other target materials

• Several activities targeted both the visually impaired and the hard of hearing with trainings on the design of the new banknotes and coins, security features and general changeover modalities.

>45 000 www.eiro.lv visitors per month

• Info telephone 8000 3000 (1744 calls in October, 2334 calls in November, 2437 calls in December, 4874 call in 1-14 January. Main topics – currency rate, general questions about euro, where to exchange)

• www.eiro.lv (during 2013 ½ million visitors)

• Weekly euro news page – for media and for eiro related institutions (1200 receivers)

• info@eiro.lv – more than 700 questions from homepage with replies provided within 24 hours 37% of people named eiro.lv as a

source of information (Factum, 11.2013)

>1,521,634,000 audience abroad

• Latvia’s Euro changeover at New Year’s eve was broadcast by 52 accredited journalists from 31 foreign media (Europe, Asia, North America). TV – 12, news agencies – 9, photo news agencies – 5, radio – 3, newspapers + online editions – 9

• 156 registered publications• Media coverage (not including news

agencies) – more than 1,5 billion people• Neutral publicity. French and Swedish media

highlighted the low inhabitants support, other countries media – Latvia’s incredible ability to overcome economic crisis

>67 000 followers in social media• Social networks:

• Facebook – 1228 followers• Twitter – 1784 followers (theoretically

tweets reach 407 200 users, one tweet –2887 users)

• Draugiem.lv – 65 674 followers (8th place in page top)

• Additional activities• Coin guessing game• Cash changover network map• Searching for Latvian maiden photo

competition• Euro calendar aplication

Public attitude

- Newest EC sociological research center's «Eurobarometer» survey (published on 20 December): In Latvia 53% support euro (average support level in EU is 52%). Support since survey in summer has increased by 10 % points.

- A large majority of Latvians (79%) perceived the changeover as smooth andefficient («Eurobarometer» 16-18 January).

- TNS in January (Swedbank survey):

- around 66% of Latvian inhabitants and 64% of entrepreneurs confirm that the changeover process was convenient;

- the mass media was the main information source for the euro introduction for 85% of Latvian inhabitants and 68% of entrepreneurs.

Survey data on euro public support

January'2013

April May June September October November December January'2014

TNS Latvia Factum Euro barometer TNS Omnibuss

Public awareness

98% know – on January 1

Latvia will introduce euro

89% feel informed well

enough about transition process(Factum, 12.2013)

1. stage: 19.09. –02.10.

- Latvia’s euro coin’s appearance and origin- Euro date in Latvia- Main sources of information

2. stage: 21.10. –15.12.

- Pension and benefit payment order- Money changeover options- Most convenient payment options

cer 1. stage:

10.09. –09.10.

- With objective to activate entrepreneurs(signes up 1216 companies with >10000 adresses,Recomended by inhabitants >400 companies

2. stage: 19.09. –02.10.

- With objective to invite inhabitants recomend fair entrepreneurs

Changeover conclusions

Changeover symbiosis

State and municipal IT

systems

Banking sector

Retail sector

Smooth change-

Inhabitants behaviour

Hints for the changeover night

Transition period during the night of 31 December :

- technical IT migration processes (numerous preliminary tests were very important)

- to draw the atention on usual everyday processes: POS reports, etc.

- cash register journals in two currencies (suggestion to use already established examples by the State Revenue Service)

Changeover most intense period and final stages27.12.2013-06.01.2013

06.01.2014-14.01.2014

INTENSIVE SUPERVISION SUPERVISION

- Transition period overnight of 31 December: ATM, POS, cash registers, internetbanks, IT systems.Technical risks were minimised as much as possible!

- During first two weeks: mutual understanding – please don’t rush, don’t crowd and don’t be angry!

Two currency parallel circulation. Additional work for sellers and attention for costumers

14.01.2014-01.08.2014

- In February final public survey.- Until 04.2014 info telephone line continues working.Seminars about accounting and redenomination of equity capital stock issues on 19 February

01.08.2014-31.12.2014

- Until the end of 2014 price monitoring will be continued.- Benefit management.Worries of undue priceinflation. To evaluate euro introduction influence on inflation that was negligible in other countries

Transition period of two weeks of dual circulation: 1 – 14 January

• ATM cash withdrawals at the level of usual average (~100 euro).

• Citizens used card payments 20-30% more to make the process smooth and easy.

Euro changeover facilitated the changes in financial services habits

Source: TNS, 18 February (Swedbank survey)

• 74% inhabitants highly evaluated internetbanking priorities

• 67% inhabitants will use more payment cards

• 61% inhabitants will keep more money at banks' accounts

Key success points:

• Project planning

• Learning from other countries experience

• Team spirit and numerous open discussions

• Strong communication partners (procurement procedure to choose the best partner)

Merchants: cash registers,

price display, etc.Communica-tors

Inhabitants:librarians,

info centersAccountingand taxes

Risksassessment

Professional expert grouping

IT registry

Municipalities

Concluding seminar on the best practice in euro project (videos at eiro.lv):

• On project overview and practical guidelines

• On communication and procurements

• On risk and benefit management

• On ICT migration and security issues

• On Latvijas Pasts experience

• On «Fair euro introducer» and price display

Thank You for Your attention and cooperation!

Euro changeover in Latvia

Economy & Finance

Transcript of Euro changeover in Latvia

Evaluation and accreditation of informatics in Latvia · 2010-06-01 · Project Euro-Inf Spread Evaluation and accreditation of informatics in Latvia Juris Dzelme (Chairman, Higher

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