Legislation paving the way for Slovakia to join the single currency came into effect on 1 January 2008, with further provisions to come into force when the euro is introduced.
The aim of the legislation is to achieve a smooth transition from the Slovak koruna to the euro. This involves measures to prevent any inflationary effect and achieve price neutrality in conversion of prices, payments, bank notes and coins allowing individuals to make a gradual adjustment to the value of new prices, etc.
The planned date for introducing the euro is 1 January 2009, with a 16-day period where both old and new currencies are legal tender. During this period, shops and other businesses must provide change in euros for cash payments made in Slovak koruna, as long as the recipient agrees.
Banks will exchange koruna bank notes for a year and coins for six months from 1 January 2009. The National Bank of Slovakia will exchange coins for five years and bank notes for an unlimited period. All exchanges will be free of charge but banks may limit the quantities of coins and notes they will exchange for free in a single session. The limit must not be lower than 100 bank notes and 100 coins in total.
One month after the official conversion rate is fixed, all prices, payments etc must be displayed in both Slovak koruna and euro (including cents). This will continue until one year after the euro’s introduction, and can be continued voluntarily for longer.
Dual prices shown in either written or electronic form must be unambiguous, clear, easily available and legible. The conversion rate must be clear and visible. The unit price must be shown in both currencies so that amounts can be easily compared.
On invoices, contracts, payment or accounting documents, cash register receipts and other documents proving payment, only the totals or final amounts need be listed in both currencies. Bank statements will have dual display of minimum opening and closing balances and all banks charges and fees.
Before the euro is introduced, the amount in Slovak koruna including haliere will be the official amount or price and, after it is introduced, the euro amount will be the official one.
Banks will be required to convert all cashless transactions into euros without charge as soon as the euro is introduced. They will also have convert all bank deposits into euros and show the euro amount in all bank statements issued after conversion. After conversion, they may not carry out any more transfers in koruna.
No local or foreign transfer orders may be carried out or accepted in koruna once the euro is introduced. However, transferors can use koruna banknotes and coins during the 16-day dual currency period to pay cash amounts to be transferred by post or bank transfer.
