Bank of Valletta and the National Euro Changeover Committee yesterday signed a wide-ranging partnership agreement by means of which BOV has been recognised as the NECC’s official bank partner.

Under the agreement, BOV will make available small euro converters, which NECC will distribute to households. NECC will also run an educational campaign with regard to the use of the converters.

The parliamentary secretary in the Finance Ministry, Tonio Fenech, who presided the signing ceremony, referred to the fact that as from 11 July, when the Ecofin Council is expected to confirm the fixed conversion rate between the Maltese lira and the euro, local banks have agreed to drop all conversion and administrative charges related to the deposit of euro notes in bank accounts.

He said this would facilitate the timely implementation of the mandatory dual display period, which will come into effect on 10 July.

This effectively meant that retailers would be able to deposit euro notes into either their euro denominated accounts or their Maltese lira bank accounts, free of any deposit charges that may normally be applicable to foreign currency deposits.

This did not mean that retailers were now obliged to start accepting payment in euro, nor could they oblige customers to pay in euro. This was still voluntary and would have to be agreed by the retail owners and the NECC, said Mr Fenech.

He emphasised that this was applicable only for business customers. Other individuals may still earn a return on their euro notes by investing them in euro-denominated accounts without any additional charge. These would be converted, at no cost, at the irrevocably fixed conversion rate on 1 January next year.

Mr Fenech also commended BOV’s initiative to commit itself not to change its fees and tariffs for the coming year.

“For the duration of this agreement, that is until the end of June next year, BOV is committed not to change any fees or tariffs for banking services as long as these are not raised by any third parties.

“This is a clear sign of commitment towards price stability and an excellent manner how to combat the unfounded perception that the euro will lead to higher prices. Indeed, BOV’s commitment should spur other operators in the financial services sector to take up such a challenge and also commit themselves on this level.”

He augured that this healthy collaboration would lead to similar initiatives in the coming months.

Yesterday’s agreement was signed by Tonio Depasquale, BOV’s chief executive officer, and Alan Camilleri, NECC executive director.

Mr Depasquale said BOV was well aware that the support of the banking sector was crucial for a successful changeover.

“We have been supporting the national effort with regard to the euro changeover and now we are delighted to be positioning ourselves as the Maltese bank that is partnering NECC to ensure a smooth and efficient transition for the benefit of the public,” said Mr Depasquale.

The euro converter that BOV has agreed to make available, is a small gadget that will automatically convert Maltese lira amounts to euro and vice-versa, making it easy and straightforward for everyone to check price conversions.

Mr Depasquale said that the critical issue with regard to prices during the changeover, will be one of transparency and the BOV converter should help to ensure that euro prices and their equivalent in Maltese lira will be fully accessible to the public.

The NECC executive director welcomed the partnership with BOV, saying that the agreement will widen NECC’s arms to better reach to the public.

“The BOV converter is an indispensable tool in the educational process that is needed to instil confidence in the changeover. The banking sector has a special role in the changeover, since it is the mechanism through which the actual money, the notes and the coins will be put in circulation,” he said, adding that the BOV euro team’s efforts to ensure a smooth changeover were commendable.

He also noted that during the past weeks, the Central Bank of Malta, the Office of the Prime Minister and NECC, together with the Police Corps and the Armed Forces of Malta, have stepped up their preparations to ensure the timely, proper and secure management of the cash logistics, which is probably the most sensitive logistical operation ever to be carried out.