The act on the euro, which defines the procedures during Slovenia's changeover to the euro as a national currency on 1 January 2007, enters into force on Friday.
The act deals with the procedure for adopting the euro, sets the period when both currencies will be in use and determines the withdrawal of the tolar from circulation. Serving as the legal basis for a smooth transition in public administration, the judiciary, financial markets and the economy, the bill defines that both currencies will be in circulation for the first two weeks of 2007. Cash-free transactions will be carried out in euros from 1 January 2007. The main interest rate SITIBOR will be replaced by EURIBOR, whereas tolar deposit accounts, securities, contracts, bills and other financial instruments will be transformed into euros on the day of the switch free of charge. The bill also determines that in the first two months of 2007 banks, savings banks and post offices will have to exchange tolars for euros free of charge. Slovenia's central bank will change tolar banknotes for euros indefinitely and without commission, but it will only exchange tolar coins until 31 December 2016.