Over e2.5 million (Lm1.07 million) in euro banknotes were withdrawn from Malta’s automated teller machines (ATMs) by noon yesterday, within the first 12 hours of the euro’s new role as Malta’s national currency.

The figure is over 10 times higher than the amount of cash withdrawn last year on 1 January 2007 and reflects the Maltese population’s thirst for getting its hands on its new currency – at an average rate of e208,000 (Lm89,290) per hour.

By all reports the currency changeover was progressing smoothly yesterday, but not without certain teething problems.

When contacted, finance ministry parliamentary secretary Tonio Fenech observed that by yesterday morning the new currency was already sinking in. He did, however, note one particular “teething problem” being faced: that of consumers using large denominations of Malta’s legacy currency, such as Lm10 and Lm20 notes, to buy small items such as newspapers and milk.

The practice, he said, was quickly draining retailers’ euro floats, leaving them unable to give change in euros as per the stipulated practice during this month’s dual circulation period, and having instead, to resort to dispensing change in Maltese liri.

“My appeal is for people to cooperate by, when possible, waiting for the banks to reopen to change larger quantities of Maltese liri, and ideally to do so as soon as possible. This would make matters easier for both consumers and retailers,” Mr Fenech urged, adding an appeal for retailers to be “patient” with the situation, as the country goes through the monumental changeover.

Also contacted yesterday, National Euro Changeover Committee (NECC) executive director Alan Camilleri, echoed Mr Fenech’s appeal urging consumers to “not use shops as exchange bureaux” and to try to give exact change when making purchases, or at least as close as possible to the amount to be tendered.

The NECC’s euro help line was, he said, inundated yesterday with queries mainly related to the very question of the provision of cash by retailers and the problem of consumers purchasing relatively inexpensive items with large denominations of Maltese lira currency.

He also appealed for consumers to challenge any non-complying retailers by demanding change in euros and to report any offending shopkeepers.

While shops are obliged to give customers change in euros, they may resort to giving change in Maltese coinage or notes only if their euro floats run dry.

The NECC was already busy yesterday morning investigating a small handful of reports of retailers refusing to accept large denominations of lira banknotes, or retailers giving change in Malta’s outgoing currency. No infringements of the regulations have resulted from the investigations.

Mr Camilleri added that all government IT systems have been successfully converted, as were all of Malta’s ATMs and the point of sale (POS) machines used for payments made with bank or credit cards.

Bank of Valletta reported its ATMs had dispensed e1.2 million by noon yesterday and that the changeover was progressing as planned. The bank also reported its POS machines, automatically converted to accept the euro as their base currency, had seen e235,000 worth of transactions by noon yesterday.

The bank’s 24x7 system was also switched on as the clock rolled over to 2008, at which time internet banking users could log on to see their account balances converted into euros. BOV’s changeover process involves some 50 IT professionals who are currently carrying out over 600 euro changeover related procedures on the bank’s internal IT systems.

With all commercial bank branches in Malta opening for extended hours until 4pm today and tomorrow, BOV added that over the coming two days the main objective will be to get as many Maltese lira notes and coins as possible out of circulation and to replace these with the new currency.

Customers will be able to make cash deposits in Maltese liri or euros, exchange Maltese lira cash for euros, and exchange foreign currency banknotes into euro banknotes and coins.

European Commission officials, meanwhile, yesterday praised Malta’s currency changeover for having gone well and as planned.

European Commission president José-Manuel Barroso commented, “Today is another proud day in Malta’s proud history – a day in which it took its place at the heart of the European Union. The euro is a strong and stable currency. Along with the economic reforms the EU and member states have undertaken, it is a reason why the European economy is still growing despite some difficult challenges caused by high energy and commodity prices.

“By joining the euro, Malta has said yes to stability, to reform and to hassle-free trade and travel for its businesses and citizens.”

Economic and Monetary Affairs commissioner Joaquín Almunia added, “The adoption of the euro is a historic event for Malta, less than four years after you became a member of the European Union. This achievement has become possible thanks to Malta’s stability-oriented economic policies. Please stay on the right path!

“I want to congratulate the Maltese authorities and all who have contributed to what are very comprehensive practical preparations.”

President Barroso and Commissioner Almunia will both be in Malta on 12 January for a ceremony celebrating Malta’s euro adoption. European Parliament president Hans Gert Poettering, European Central Bank president Jean Claude Trichet, Slovenian Prime Minister Janez Jansa, Slovak Prime Minister Robert Fico and other European dignitaries are also expected to attend the event.

While Malta’s dual circulation period will run until 31 January, the Commission yesterday predicted that within a “couple of days the cash changeover will be completed, and virtually all cash transactions will be carried out in euro”.

The Commission, which will be issuing regular progress reports on Malta’s changeover process, adds it will “continue to monitor the changeover operation very closely”.