Bank of Valletta and the National Euro Changeover Committee (NECC) signed a wide-ranging partnership agreement last week in which BOV is recognised as the Official NECC Partner Bank.
The agreement was signed by Tonio Depasquale, chief executive officer of Bank of Valletta and Alan Camilleri, executive director of the National Euro Changeover Committee in the presence of the Parliamentary Secretary in the Ministry of Finance, Tonio Fenech, during a press conference held at BOV Centre in Sta Venera.
Mr Depasquale announced that Bank of Valletta would make available the euro converters the NECC will be distributing to all households in Malta and Gozo later on this year as the euro changeover draws closer.
The gadget will be known as the “BOV Converter” and will automatically convert Maltese lira amounts into euro and vice versa, making it easy and straightforward for everyone to check price conversions.
He said that during a changeover, the critical issue in relation to pricing is one of transparency and the BOV Converter should help ensure that euro prices and their equivalent in Maltese lira are fully accessible to the public.
Mr Camilleri commended the hard work currently being carried out by BOV employees to ensure that a smooth changeover will actually materialise.
Mr Camilleri also noted that during the past weeks, the Central Bank of Malta, the Office of the Prime Minister and the NECC, together with the Police 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.
Parliamentary Secretary Tonio Fenech said that as from 11 July, with the fixing of the conversion rate between the Maltese lira and the euro by the ECOFIN Council, the banks have agreed to drop conversion and administrative charges related to the deposit of euro notes in bank accounts for retailers. He said this would facilitate the timely implementation of the mandatory dual display period that starts on 10 July.
This effectively means that retailers would be able to deposit euro notes into either their euro denominated accounts or their Maltese lira bank accounts, free of deposit charges that are normally applicable in foreign currency deposits.
This does not mean that retailers are now obliged to start accepting payment in euro, nor can they oblige their customers to pay them in euro. This is still voluntary and has to be agreed by the two sides.
Mr Fenech emphasised that this is only applicable for retail business customers. Other individuals may still earn a return on their euro notes by investing them in euro-denominated accounts without any additional charge.
Mr Fenech also commended BOV’s initiative to commit itself not to change its fees and tariffs in the coming year. “For the duration of this agreement, that is, until the end of June 2008, Bank of Valletta commits itself not to change any fee or tariff for banking services as long as these are not raised by any third parties. This is a clear sign of commitment to price stability and an excellent manner how to combat the unfounded perception that the euro will increase 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.”