Slovakia: arrangements for euro conversion

On 7 July 2008., the EU Council set an irrevocable conversion rate of €1 : SKK30.1260 for Slovakia’s conversion to the euro currency.

Mandatory dual pricing begins on 24 August 2008 (although business can start earlier if they wish).

A period of dual cash circulation will begin on 1 January 2009 until 16 January 2009, when shops and businesses can accept payment in either Euros or SKK but must give change only in euros. During the dual cash circulation period, individuals and businesses (apart from the National Bank of Slovakia and commercial banks) can refuse to accept payment in SKK if the amount tendered is more than four times the amount of payment required.

It will be possible to exchange SKK banknotes and coins for euros at NBS and commercial banks. NBS will continue to exchange Slovak banknotes indefinitely and coins until the end of 2013, while commercial banks will only continue to exchange banknote until the end of 2009 and coins until the end of June 2009.

From 1 January 2009, all bank accounts and other cashless financial holdings will be converted free of charge into euros at the official conversion rate.

Also from 1 January 2009, transfer orders may only be transacted in euros but, between 1 and 16 January 2009, amounts to be transferred in euros may also be deposited and paid in SKK.

Any amounts to be paid or invoiced (final amounts in invoices or statements on account) are converted into euros at the official conversion rate and rounded up to the nearest two decimal places.

Unit prices in SKK are not subject to rounding after conversion but, where rounding is required, unit prices in euros are normally given one decimal place more than those in SKK. Unit prices in euros are usually shown to three decimal places and, for commodities such as water, electricity and gas, at least four.

During the dual pricing period from 24 August to 31 December 2008, employees’ payslips should show their salary or wages in euros, rounded up or down after conversion to the nearest eurocent (and rounded up if equal).

Commercial companies and cooperatives must convert the nominal value of equity and financial deposits from SKK to euros, and may choose to round up or down (consistently for all holdings).

Limited liability companies must have a minimum equity of €5,000 and each shareholder’s contribution must be at least €750. In a joint stock company, the minimum equity is €25,000.