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RELATED KEY TERMS AND OFFICIAL DOCUMENTS |
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From January 1, 2009, Slovak koruna (SKK) can be exchanged for Euro only at the conversion rate determined by the Council of EU on July 8, 2008. The conversion rate is determined as a coefficient with six valid digits, which express the equivalent of 1 Euro in Slovak korunas (1 EUR = 30,1260 SKK). When exchanging money, the exchange rate must be applied exactly as it was determined, it cannot be rounded or otherwise modified.
The main tool applied to enhance protection of customers is the dual display of prices which started on August 24, 2008 and is obliged according to the code 659/2007. Prices of all products and services are determined exactly according to the conversion rate 1 EUR = 30,1260 SKK and are appropriately displayed in both SKK and Euro. This way, consumers have the opportunity to get used to prices in the new currency. Retailers will be required to continue in dual displaying of prices until the end of 2009, after which they will have the choice to continue in this practice voluntarily for another 6 months.
From January 1, 2009, Euro will be used as the currency in cash circulation. Koruna will become only a denomination of Euro. During the short period of dual circulation, which will last until January 16, 2009, koruna banknotes and coins will be a valid tender in Slovakia, but will be gradually withdrawn from the circulation. After the end of the dual circulation period, the only legal tender in Slovakia will be Euro.
The National Euro Changeover Plan - which was approved by the Bank Board of NBS on June 23, 2005, by the Slovak government on July 7, 2005, and its amendments were approved by the government on March 21, 2007 - represents a plan of individual steps that need to be taken in order for smooth and successful adoption of Euro in the entire Slovak economy. The National Euro Changeover Plan has established the National Coordination Committee, which is the highest execution and coordination body for the process of adopting Euro in Slovakia.
This is the act which will govern adoption of Euro as the national currency. It determines conditions for dual displaying of prices, dual circulation, exchange of banknotes and coins, online payments, rounding and recalculation of basic capital of businesses, of securities and other assets. It also provides other rules related to the adoption of the Euro currency. The act came into effect on January 1, 2008. Certain enactments will become valid as of January 1, 2009.
The purpose of the Code of Ethics is to establish a sense of trust and sufficient awareness of public institutions, entrepreneurs and naturally also consumers with regard to the successful changeover to the new national currency Euro. One of its signatories is also the Slovak Banking Association, as well as some of its members.
After recalculation to Euro, the numerical expression of prices will significantly differ from the current ones in korunas. Some consumers will find it difficult to decide whether prices of certain goods or services are advantageous or disadvantageous. The role of consumer protection is to prevent the temporarily decreased price understanding of consumers from being abused for rising of some prices. Detailed procedures will be included in the consumer protection concept that will be prepared by the Economy Ministry.
