In 2022 is the 20th anniversary of introducing euro banknotes and euro coins. On 1 January 2002, 12 EU countries saw the largest currency exchange in history (three years earlier the euro was introduced as a currency monetary unit). Today, the euro is the currency of 20 EU countries and to over 340 million Europeans. The euro is one of the most important currencies in the world and the European Central Bank has the task to protect its value.
1 January 2023 Republic of Croatia became the 20th EU member state where the euro is the official national currency.
The euro is one of the main symbols of European integration and each eurozone member state has the possibility to put a national motif on one side of the euro coin, so the Croatian coins have the following motifs:
- geographical map of Croatia,
- a marten,
- Nikola Tesla, and
- the Glagolitic script with the chequerboard pattern in the background of all motifs.
IMPORTANT INFORMATION ON THE INTRODUCTION OF THE EURO
With the aim of keeping our clients – natural persons (consumers) and business entities well advised, we bring a short overview of information and activities by Privredna banka Zagreb d.d. related to the introduction of the euro.
On 1 January 2023 the euro will become the official currency in the Republic of Croatia!
On the euro introduction date, the Bank will carry out the conversion of kuna funds in bank accounts, deposits, loans, and other monetary values, automatically and free of charge, according to the fixed conversion exchange rate of
1 euro = HRK 7.53450.
The conversion will be carried out by applying the rule for conversion and rounding off in accordance with the Act on the Introduction of the Euro as the Official Currency in the Republic of Croatia. Also, according to the principle of continuity concerning agreements and other legal instruments, the introduction of the euro will not affect the validity of existing loan agreements, deposits and savings in kuna and other bank products, so there is no need to enter into new agreements. The aim is to carry out the process of introducing the euro and the associated activities smoothly and in the simplest possible manner for all the parties concerned.
(link to the euro.hr page)
- PERIOD OF DUAL DISPLAY OF PRICES
- DUAL CIRCULATION PERIOD OF KUNA AND EURO
- PROVISION PERIOD OF EURO COIN STARTER KITS
- SUB-FRONTLOADING OF BUSINESS ENTITIES
- YOUR ACCOUNTS
- YOUR LOANS
- INTEREST RATE
- YOUR DEPOSITS
- YOUR CARDS
- DIGITAL AND ELECTRONIC BANKING SERVICES
- PAYING WITH 2D BARCODE PAYMENT SLIP AT AGENTS’ POS
- PBZ ATM NETWORK
- DEADLINES FOR EXCHANGE OF KUNA CASH MONEY
- PBZ EXCHANGE RATE LIST
- NOTIFICATION TO CLIENTS
PERIOD OF DUAL DISPLAY OF PRICES
The period of dual display of prices (in kunas and euros) to consumers will start on 5 September 2022 at the latest and will end after 12 months as of the euro introduction day.
In the mentioned period, the Bank will provide essential information to clients – consumers:
- Fee tariffs;
- Bank fees in credit operations with natural persons;
- reports on the balance and movements in kuna transaction account – initial and final balance of the account and overdraft amount;
- account balance and the amount of overdraft or available balance in the account display via On-line banking [PBZ digital banking] service;
- at ATMs when disbursing cash in the pre-defined amounts offered on the screen and when inquiring about the account balance;
- for HRK loans that were offered before the euro introduction date – total amount of loan and the amount of monthly instalments in the loan repayment schedule;
- for existing loans in kuna: balance of undue and overdue payable debt in the annual loan status notice;
- with the annual notice of kuna deposit status – balance of deposit.
In addition, when providing investment and/or auxiliary services, when applicable, the Bank will provide the following essential information for clients - consumers in the mentioned period:
- Fee Tariffs (Investment services price list);
- Amounts of initial and closing balance in customer's cash account;
- Monetary value of the closing balance in customer's financial instruments account;
- Aggregated amount ex ante and ex post information on fees and expenses charged to customer as prescribed in Article 50 of the Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OG L 87, 31. 3. 2017) (hereinafter: Directive (EU) no. 2017/565);
- Amount of closing balance in customer's cash account on the main menu/screen of the digital channel through which the investment or auxiliary service is provided.
DUAL CIRCULATION PERIOD OF KUNA AND EURO
During the first two weeks from the day of the introduction of the euro, it will be possible to pay in kuna and in euro cash.
PROVISION PERIOD OF EURO COIN STARTER KITS
The provision of the euro coin starter kits to consumers and businesses begins at the earliest a month before the day of the introduction of the euro.
- Euro starter kits for consumers - the Bank sub-frontloads all consumers regardless of whether they are clients of the Bank. The consumer will pay HRK 100 for one Euro starter kit and it will contain 33 euro coins of all denominations with a value of 13.28 euros.
- Euro starter kits for business entities contains 525 Euro coins of all denominations, worth 145.50 euros (according to the fixed conversion rate, which is HRK 1,096.27). The value of the starter kits recalculated at the fixed conversion rate will be charged by debiting the business entity’s kuna transaction account with the Bank applied on the day when the Euro starter kits are picked up. To purchase the starter kits for business entities, it is necessary to enter the order in the Bank's application for ordering euro cash from the sub-frontload. Link to application access: https://csp.pbz.hr
Purchase of Euro starter kits will be free of charge.
SUB-FRONTLOADING OF BUSINESS ENTITIES
In order to adjust business in the new official currency, each client – business entity – determines its own needs related to (sub)-frontloading of euro cash in accordance with planned business activities. (the activity was terminated on Dec 30, 2022.)
All your kuna funds in transaction accounts on the day of the introduction of the euro will be converted into euros with the application of the fixed conversion rate, and after the conversion you will be able to continue your usual transacting in all your bank accounts.
All existing accounts will retain their unique account number (IBAN), and previous transaction accounts in kuna will become transaction accounts in euros.
On the day of the introduction of the euro, the Bank will also convert the existing overdraft balance, which will remain usable in an unchanged manner.
Transaction accounts in foreign currency are not subject to conversion and at the time of conversion, all currencies and balances therein will be kept unchanged, including the euro currency, thus becoming transaction accounts in euros and foreign currency. Therefore, due to the introduction of the euro itself, it is not necessary to undertake any activities related to your existing transaction accounts.
- Individual consumers who before the day of the introduction of the euro have an account opened in the Bank in both kunas and euros, in accordance with the Act, have the right to close one or more accounts and transfer the funds recorded in those accounts to an account of their choice in the Bank, within 60 days from the day of the introduction of the euro, free of charge.
- Business entities who have opened a multi-currency transaction account at the Bank, will have the funds on the kuna component of the transaction account converted into euros, at the fixed conversion rate and in accordance with the rules of conversion and rounding off. Automatically, the balance on the existing euro component of the multi-currency transaction account will be added to those funds. After the conversion, only one, unified euro component will remain, as well as the unchanged components of the account in foreign currency. The unique number of the transaction account (IBAN) will also remain unchanged and account operations will be enabled without any additional activities on the part of business entities.
All your loans approved and used in kunas on the day of the introduction of the euro will be converted into euros with the application of the fixed conversion rate and henceforth all obligations under the loan will be paid in euros.
- If, before the introduction of the euro, the loan was approved with a currency clause in euros, from 1 January 2023, it will continue to be paid in accordance with the stated amount in euros without conversion.
- The Bank will deliver a notice with information about the essential elements of the conversion, the parameter, the margin (fixed part) and the amount of the interest rate related to your loan after the introduction of the euro as the official currency, in the agreed manner no later than two weeks before the day of the introduction of the euro, and to clients who are not consumers no later than two weeks after the introduction of the euro.
Interest rates will be adjusted in accordance with the provisions of the Act, which describes the rules for contracts in which a fixed interest rate or floating interest rate is agreed.
If a fixed interest rate has been agreed upon, it will remain unchanged.
In the case of variable interest rates, reference rates in kunas will be replaced by corresponding reference rates in the euro denomination (instead of the NRS for the kuna, the NRS for the euro of the appropriate scope and maturity will be used, that is, instead of the parameter of yield on treasury bills in kunas, after the date of introduction of the euro, the yield on treasury bills in euros will be used as a parameter, with the beginning of the application of the interest rate calculated in this way at the first regular interest calculation starting from the day of introduction of the euro).
All your kuna funds in deposit accounts and demand savings deposits on the day of the introduction of the euro will be converted into euros using the fixed conversion rate.
- All existing kuna deposits and demand savings deposits will retain their unique account number and after conversion they will become deposit accounts and demand savings deposits in euros.
- Demand savings deposits in foreign currency at the time of conversion will keep all their currencies and balances unchanged, including the euro currency, thus becoming demand savings deposits in euros and foreign currency.
After the introduction of the euro, Bank cards remain valid until the date marked on the card and you can continue to use them for all payments and cash withdrawals in the usual way.
Card transactions that you make in kunas until 31 December 2022, and are due for payment after 1 January 2023, will be converted into euros using the fixed conversion rate.
DIGITAL AND ELECTRONIC BANKING SERVICES
Users of On-line banking [PBZ digital banking] services, as well as PBZ digital banking for business entities and electronic banking for business entities, will be able to manage their finances within the existing internet and mobile application immediately after the conversion of kuna amounts of assets and liabilities into euros.
- Payment orders from 1 January 2023, which are entered manually into digital and electronic banking channels or are uploaded by way of bulk order files, should be placed in euros (if the payment is made according to an account or invoice set in kunas, after January 1st the amount should be converted to euros using the fixed conversion rate and rounding off rules).
- Orders in favour of a transaction account in another bank in the Republic of Croatia in HRK currency, authorized and sent for execution on 30 and 31 December 2022, with the currency of execution in 2023, will be automatically converted into euros at a fixed conversion rate.
- Scheduled orders (with future value date) given in 2022 with an execution date in 2023 will be automatically converted into euros at a fixed conversion rate.
PAYING WITH 2D BARCODE PAYMENT SLIP AT AGENTS’ POS
The Bank will convert the amount in kunas into euros, applying a fixed conversion rate, on the payment slips on which the amount of payment is stated in kunas, and which you submitted at the sales points of our 2D barcode agents for execution after the date of introduction of the euro. The Bank will receive orders in kuna, and after conversion at a fixed exchange rate, execute them in euros within a period of six months from the date of introduction of the euro.
PBZ ATM NETWORK
Given that the entire ATM network has to be adjusted to the new currency and loaded with cash in euros for regular operation from 1 January 2023, a gradual adjustment of a certain number of ATM-s will be carried out during December 2022.
From 1 January 2023, cash machines will start dispensing euros, first in smaller denominations of 10 and 20 euros, and later larger denominations will be introduced gradually, as required.
To facilitate this transition period, during the days of ATM network adjustment, we recommend a more often use of non-cash payment channels such as card payments and digital and electronic banking.
In order to enable wider availability of cash withdrawals in kuna and euro at ATMs, the Bank will temporarily waive the fee for consumers to withdraw cash by debit card at ATMs of other banks in the Republic of Croatia in the period from December 15, 2022 to January 15, 2023.
DEADLINES FOR EXCHANGE OF KUNA CASH MONEY
During 12 months from the date of the introduction of the euro, the Bank will exchange cash kunas for euros in all its branches free of charge with the application of a fixed conversion rate in accordance with the rules of conversion and rounding off.
In addition to banks, in the first 12 months, the service of exchanging kuna cash for euros will be provided free of charge by FINA and Hrvatska pošta.
After the expiration of 12 months from the date of the introduction of the euro, the Bank will no longer offer currency exchange services, and from that day onwards, kuna cash money can be exchanged for euros solely at the Croatian National Bank, without charge, for kuna banknotes without a time limit, whereas kuna coins can be exchanged within and up to three years lapsed since the introduction of the euro.
Clients are recommended to deposit kuna funds in their bank account before the introduction of the euro, which will automatically be converted into euros, which is ultimately the simplest and easiest way for both clients and the Bank.
PBZ EXCHANGE RATE LIST
From the day of the introduction of the euro as the official currency, the exchange rate list will be adjusted; the Bank will publish the exchange rate for the euro in relation to other currencies.
NOTIFICATION TO CLIENTS
According to the Act, the Bank’s clients – consumers and business entities – will be informed via general notification announcing the upcoming recalculation no later than three months before the day of the introduction of the euro through at least one written or electronic communication channel.
The Bank will deliver an individual notification with information on changes to kuna loans/term deposits or loans/term deposits with currency clause in euros, which will contain essential elements of conversion, parameter, margin (fixed part) and the amount of the interest rate, to consumers in the agreed manner no later than two weeks before the day of the introduction of the euro, and to non-consumers no later than two weeks after the introduction of the euro.
Clients – users of financial services (brokerage and custody services) will be informed about the conversion elements no later than three months before the day of the introduction of the euro through the website and advertisements in the press, and about the implementation of the conversion no later than 30 days after the day of the introduction of the euro by an individual notification in the agreed manner of communication.
NOTICE OF ESSENTIAL RECALCULATION ELEMENTS IN KUNA-EURO CONVERSION
Notice to the Clients
This is to inform you that amendments will be made to the below listed documents of Privredna banka Zagreb d.d. (hereinafter: the Bank) used in transactions with business entities, to take effect on 1 January 2023:
- General Operating Terms of Privredna banka Zagreb d.d. for transaction accounts and performance of payment and other services for non-consumers
- Fees for services in payment transactions charged to business entities (hereinafter: the Price List/Tariffs)
- Cut-Off Time (Time of receipt and execution of payment system orders)
- General Terms for the Use of Electronic Banking Services of Privredna banka Zagreb for Business Entities
- General Operating Terms of PBZ d.d. for Issuance and Use of Debit Cards for Business Entities
- General Terms for the Use of PBZ Digital Banking for Business Entities
The above-mentioned documentation has been modified for the purpose of adjusting business processes to the introduction of the euro as the official currency in the Republic of Croatia, to take place on 1 January 2023.
For your convenience and to help you navigate in new circumstances, we have prepared a review of most important changes and adjustments - follow the link - related to transaction accounts.
For all additional information and questions, please contact: