In two months’ time, people will be able to start familiarising themselves with euro coins as mini-kits will be made available in all commercial banks.

Business starter-kits for retailers will be made available on 1 December, while mini-kits for the public will be obtainable as from 10 December.

The starter kits for retailers will consist of EUR131 in coin rolls, while the mini-kits will contain EUR11.65 in loose coins.

On the basis of estimated circulation levels on the last day of May this year, the Central Bank of Malta anticipates it will need to replace about Lm 432.8 million / EUR1,008.2 million worth of notes, and about Lm20.5 million / EUR47.8 million worth of coins on 1 January.

However, should there be variations in withdrawal and deposit patterns at the Central Bank, these figures could vary by e-day. It is estimated that the bank will order some 80 million euro notes and 200 million euro coins to meet changeover needs.

As for cash transactions, the euro will be considered a foreign currency until 31 December and will only become legal tender on 1 January. Exchange charges will still be applicable when exchanging the Maltese lira for euro and vice-versa.

However, in order to facilitate the euro adoption process, banks are already obliged not to impose any charges when receiving deposits of euro

banknotes into euro denominated bank accounts.

As from 1 December, the Maltese lira to euro conversions will be carried out at the irrevocably fixed conversion rate of EUR1=Lm0.4293 and no bank charges will be applicable, although normal bank charges will be applicable on other services such as Swift.

Arrangements are also being made with credit institutions, so that low denomination notes, particular five euro notes, will be made available at no charge during the month of December, and during the first few days of the changeover.

It is planned that about 60 per cent of ATMs will dispense euro banknotes after midnight on the night between 31 December and 1 January. By midday, euro notes will be made available from about 85 to 90 per cent of ATMs, and all machines should be dispensing notes by 4pm.

Only low denomination euro banknotes, mainly 10’s and 20’s, will be dispensed at ATMs during the dual circulation period, (1-31 January) to ensure that high denomination banknotes would not be presented for change during this period, as this could place unnecessary demands on cash resources.

These two denominations roughly correspond to the current Lm5 and Lm10 banknotes, which are the two most widely used denominations at present.

When the dual circulation period ends, the banks will be free to decide which denominations to dispense from their ATM networks.

Deposits of Maltese lira banknotes through ATMs will be possible until the end of March 2008.

Cheques drawn in Maltese liri prior to e-day may also be deposited within the normally accepted cheque validity periods, at the latest, by the end of June 2008. Banks will provide appropriate guidance for effecting such deposits.