OREANDA-NEWS. November 11, 2014. The euro will become the mandatory means of payment in Lithuania as of 1 January 2015. Please note that the introduction of the euro will have no impact on the validity of the customer agreements concluded with Nordea bank: the agreements will remain legally effective until the term of expiry as specified, however, as of the date of the introduction of the euro, non-cash payments in litas or bank accounts in litas will no longer be available.

As of 1 January 2015, any reference to litas present in agreements and general terms and conditions will be considered as references to euros that will be converted based on the irrevocably fixed conversion rate of 1 EUR to 3.45280 LTL, rounding the amount to two decimal places in accordance with the Law on Euro Adoption in the Republic of Lithuania. The third place after the decimal will be decisive, i.e. where the digit is smaller than 5, the amount is rounded down, whereas where it is equal to or greater than 5, the amount is rounded up.

Euro adoption will have no impact on customer agreements with Nordea bank

The euro will become the mandatory means of payment in Lithuania as of 1 January 2015. Please note that the introduction of the euro will have no impact on the validity of the customer agreements concluded with Nordea bank: the agreements will remain legally effective until the term of expiry as specified, however, as of the date of the introduction of the euro, non-cash payments in litas or bank accounts in litas will no longer be available.

As of 1 January 2015, any reference to litas present in agreements and general terms and conditions will be considered as references to euros that will be converted based on the irrevocably fixed conversion rate of 1 EUR to 3.45280 LTL, rounding the amount to two decimal places in accordance with the Law on Euro Adoption in the Republic of Lithuania. The third place after the decimal will be decisive, i.e. where the digit is smaller than 5, the amount is rounded down, whereas where it is equal to or greater than 5, the amount is rounded up.

Any references to the official exchange rate of litas to foreign currencies as fixed and announced by the Bank of Lithuania will be considered references to the euro foreign exchange reference rates as announced by the European Central Bank.

Bank accounts
On the day of euro introduction, 1 January 2015, account balances in litas will be automatically converted to euros free of charge based on the official conversion rate of 1 EUR to 3.45280 LTL, rounding the amount to two decimal places. The account number will remain unchanged. As part of preparations for euro adoption, Nordea customers are recommended to make use of the bank’s free service to deposit their cash savings into a bank account instead of accumulating funds.

Nordea customers who hold bank accounts both in litas and euros are entitled to close one or multiple bank accounts free of charge and transfer the funds to one or multiple accounts of their choice at Nordea.

Deposits
Deposits in litas held at Nordea bank accounts will be automatically converted to euros free of charge based on the official conversion rate, rounding the amount according to mathematical rounding rules. Agreement terms and conditions as well as interest rates will remain unchanged until the expiry of the agreement or its next automatic renewal. After conversion to the euro, the deposit interest rates of automatically renewed and new deposits will be calculated based on the euro deposit price list.

Credits
Please be informed that as of 1 January 2015 credit payments in litas will change to credit payments in euros with the final amounts payable to be calculated based on the official conversion rate, rounding the amount to two decimal places.

Any references to the VILIBOR index in customer agreements with Nordea bank will be considered references to the EURIBOR index as of the date of the adoption of the euro. It is the commitment of Nordea to ensure that changes in the index have no effect on the margin set for customers.

Please note also that the withdrawal of litas from circulation will have no impact on either credit agreement terms and conditions or agreement validity. Any references to litas present in agreements or annexes thereof will be considered references to the euro based on the official conversion rate.

Bank fees
As of the introduction of the euro, commissions on deposits and transfers will be deducted in euros. For more information on fee conversion, please visit the Nordea website. Nordea bank has signed the Good Business Practice Memorandum that ensures fair fee conversion.

For further details, please contact us at 8 800 34528 (free of charge); other relevant information concerning the introduction of the euro is available on our website at www.nordea.lt/euras and www.euro.lt.