Marika Merilai, Igaunijas tirgotāju asociācijas vadītāja. Komunikācija un sadarbība kā eiro ieviešanas plāna svarīga sastāvdaļa. Eiro ieviešanas ietekme uz biznesu Igaunijā. Iegūtā pieredze.

1. Changeover to EURO in Estonia
11.09.2013
Riga
Marika Merilai
Eesti Kaupmeeste Liit
www.kaupmeesteliit.ee

2. Changeover to euro in Estonia
Agenda
• Practical information - basic principles
• Dual circulation period
• Rounding rules
• Exchange of kroon cash into euro
• Cooperation
• Communication
• Lessons learned
www.kaupmeesteliit.ee

3. Changeover in Estonia vs. EU in 2002 and Slovakia in 2009
Things were easier for us as and for you:
– Euro already existed
– We could learn from other countries’ experiences (Finland, Slovakia)
– We are a small country – less logistical problems
Things are more challenging for us as:
– Less international awareness: we had to put more emphasis on
informing foreign partners and travellers
www.kaupmeesteliit.ee

4. Changeover in Estonia
www.kaupmeesteliit.ee
Estonia joined EU and the ERM II in 2004 with existing EUR/EEK
exchange rate 1 euro=15,6466 kroons
Estonia started the preparations in 2004-2005 and the
Government formed an expert commission
On 1 September 2005, the Government approved the first version
of the national changeover plan.
See the latest, 9th version (.pdf) in 2010

5. Practical information - basic principles
“Big bang” for settlements, contracts and accounting,
2 weeks dual circulation
All banks changed kroon during one year (6+6 months) and 1
month before €-day
Eesti Pank (Estonian Bank) changes kroons against euros with fixed
exchange rate without time or amount limits
www.kaupmeesteliit.ee

6. Practical information - basic principles
Retail sector did display prices in the kroon and the euro at
least 6 months before and after €-day
No harm for citizens
Continuity of contracts
Responsibility. Expenditure related to the changeover were
covered by market participants themselves
www.kaupmeesteliit.ee

7. www.kaupmeesteliit.ee
Starter kits of Estonia's euro coins
In December 2010, the residents of Estonia could buy a starter
kit of Estonia’s euro coins (42 euro coins with value of 12.79 euros)
Starter kits were purchased from all the branches of commercial
banks and also from post offices.
Practical information - basic principles

8. Practical information - basic principles
Business impact
Although mostly perceived as an IT problem, Euro changeover affects
almost all areas of a company:
Finance and Accounting Operations
Controlling Legal
Human Resources Marketing and Sales
Information Systems
IT - the largest affected area due to its supporting function in all areas of
business.
IT cost tend to be 40-60% of company’s total changeover costs.
www.kaupmeesteliit.ee

9. Dual circulation period
www.kaupmeesteliit.ee
Since the €-day - a two-week dual cash
circulation period:
payments were allowed in kroons
and euros, but change was mostly
given in euro
after the period of dual circulation,
the only legal tender in Estonia is euro.

10. Dual circulation period
www.kaupmeesteliit.ee
Practical recommendations for the period of parallel circulation:
Plan a small reserve for the change of year to enable you to take cash in euros
from your circulating capital, if necessary.
If your shop wishes for a security company to transport the cash, all the
necessary agreements have to be made by the end of September at the latest.
During the period of parallel circulation, the number of cash registers in service
has to be higher, since settling accounts in two currencies takes more time.
It is recommended to return change to customers in euros during the period of
parallel circulation.

11. Display of prices in two currences
www.kaupmeesteliit.ee
The dual display of prices let customers compare prices.
For six months before and six months after €-day, retailers
were required to display of prices in two currencies.
Retailers were recommended to display prices (also unit prices)
in both currencies in as many ways as possible, on websites, in
promotional materials, catalogues, total amounts of invoices,
purchase receipts, etc.

12. Display of prices in two currences
www.kaupmeesteliit.ee
The dual display of the amounts payable was especially important
prior to €-day in order to prevent customers from calculating
amounts payable in euros using an inaccurate exchange rate.
The Ministry of Economic Affairs and Communications together
with representatives from trade sector draw up guidelines for the
dual display of prices.
MILK 2,5% 0,5 L
4.20 EEK 0.27 €
8.40 EEK/1L 0.54 €/1L

13. Rounding rules
www.kaupmeesteliit.ee
Prices were converted at the exchange rate of
1 euro=15.6466 Estonian kroons.
1 EUR = 0.702804 LVL
Rounding is carried out to an accuracy of at least one euro cent
calculated to three decimal places.
If the third decimal is 5 or above, the converted value is rounded up.

14. Exchange of kroon cash into euro
www.kaupmeesteliit.ee
Cash exchange took place through
the following official channels:
Bank branches
Automated teller machines (ATM)
Retailing
post offices

15. www.kaupmeesteliit.ee
Cooperation
• Ministry of Finance
• Ministry of Economic Affairs and Communocation
• Estonian Bank (Eesti Pank)
• Estonian Banking Association
• Estonian Chamber of Commerce and Industry
• Consumer Protection Board
• NETS
• IT companies
• Security companies
• etc
• Estonian Traders Association
• Retail chains and shops

16. www.kaupmeesteliit.ee
Cooperation
Frontloading and sub-frontloading of euro banknotes and
coins before €-day (Estonian Banking Association, banks, G4S,
retailers etc)
Coin campaigne for donation of Food Bank ( 1226054
kroons or 78359 euros. Estonian Banking Association, Estonian
Traders Association, Food Bank, G4S)
Fair pricing campaign (started in the end of August 2010,
Estonian Chamber of Commerce and Industry, Traders
Association etc)

17. Euro communication
One plan of communication
Euro web page: euro.eesti.ee (in Estonian, Russian and English)
in 2010
Guidelines
Brochures to businesses, newspaper on euro to schoolchildren
Moving exhibition
Euro-calculator
Newspaper articles, radio, TV
Conferences, info-days and trainings for different interest groups
www.kaupmeesteliit.ee

18. www.kaupmeesteliit.ee
Lessons learned
Timing. Better to start earlier with the assesmment of the impact
Communication and information. Communicate and
create awareness. The right information in time to the right people.
Cooperation. Contact IT supplier. Cooperation with different
parties, associations, working grouppes.
Training. Estonian Bank, associations, companies etc

19. www.kaupmeesteliit.ee
Lessons learned
What we could take into account?
Transactions in two currencies took more time we did think.
Amount of coins was bigger and weight heavier
During the first days customers used more kroons
For SME-s was difficult to forecast the need of euro cash
In rural places retailers were exchange points like banks
The period of parallel handling/circulation of two currencies
could be even shorter.
At the end of the fifth changeover day 54 % of consumers were paying
with euro only when using cash and all (96 %) customers were receiving
their change in their new currency.

20. www.kaupmeesteliit.ee
Retail sales (mln euros) 2005-2012
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2005 2006 2007 2008 2009 2010 2011 2012
Jaekaubandus, v.a mootorsõidukid ja mootorrattad
Toidukaupade jaemüük
Trend (Jaekaubandus, v.a mootorsõidukid ja mootorrattad)
Trend (Toidukaupade jaemüük)

21. www.kaupmeesteliit.ee
Retail sales volume index 1998-2013, compared with previous year
Allikas: Statistikaamet
-20
-15
-10
-5
0
5
10
15
20
2005 2006 2007 2008 2009 2010 2011 2012
Mahuindeksimuutus%

22. www.kaupmeesteliit.ee
Consumer price index
Source: Statistikaamet

23. www.kaupmeesteliit.ee
Customers,
retailers:
be patient,
be careful,
be reasonable,
be understanding,
just do your best!
Good luck!

24. www.eiro.lv
http://www.euro.eesti.ee
www.kaupmeesteliit.ee

25. Thank you!
Estonian Traders´Association
Eesti Kaupmeeste Liit
info@kaupmeesteliit.ee
www.kaupmeesteliit.ee
www.kaupmeesteliit.ee