HGK: In the period of dual circulation of kuna and euro, use cashless payment models

Ten days until Croatia enters the eurozone and Schengen area, the trade sector, which along with financial institutions will bear the greatest burden of transitioning to the new currency in the first days of the coming year, is prepared for this demanding process to facilitate the transition to the new currency for citizens and consumers as much as possible, says the Croatian Chamber of Economy.

Although the majority of preparations for the overall economy are behind us, for consumers and traders, the most challenging period is the time of dual circulation which begins on January 1, 2023, and ends on January 14, 2023. During the dual circulation period, both kuna and euro can be used for all cash payments, with the note that the trader or recipient of the payment is not obliged to accept more than 50 kuna coins in a single transaction. Also, if during the specified period a business entity is not objectively able to return the remainder of the amount in cash euros, the remainder can be returned in cash kuna or in cash kuna and cash euros.

The recommendation of the HGK trade sector is that citizens make the most of cashless payment models during the specified period and supply themselves with a smaller amount of cash for consumption during New Year’s Eve and the first days of January. – We urge citizens that in the first days of dual circulation, in stores when paying at the cash registers, to give priority to our older fellow citizens, but also to show understanding towards cashiers who will face the additional challenge of receiving two currencies and converting them – stated Sanja Smoljak Katić, director of the HGK Trade Sector.

The HGK also reminds that there will be an automatic conversion of funds in the accounts of all citizens and business entities, which will facilitate the initial period of economic activity during dual circulation. The use of electronic payment methods, such as card payments and digital transactions, will ensure smooth payment for goods and services and reduce the pressure for cash. – In addition to reducing operating costs for businesses, waiting lines in stores would be reduced and uncertainties and potential misunderstandings regarding the exact return of money would be avoided – stated the chief economist of HGK Goran Šaravanja.

During the New Year’s weekend, online banking will mostly be unavailable

The process of introducing the euro and replacing the Croatian kuna with the euro is an extremely demanding process, especially in terms of adapting the IT systems of banks, so some banking and financial services will be temporarily unavailable or will be available in a limited capacity during the conversion weekend (Saturday, December 31, and Sunday, January 1), and in some smaller banks even on December 30. Therefore, shorter interruptions in the ability to pay by card are expected on the night of December 31 to January 1, just before and after midnight, while during the New Year’s weekend, internet and mobile banking will mostly be unavailable, making it impossible to execute online payments in most cases.

The HGK also reminds that citizens will have a sufficient number of ATMs for withdrawing kuna until the end of this year, and euros from the first day of the new year, and until January 15, 2023, the fee for withdrawing cash with debit cards at all ATMs has been temporarily waived. It is expected that all four thousand ATMs will be adapted and operational by January 15, 2023, at the latest. Citizens can obtain all information about the introduction of the new currency on the central information portal euro.hr, and insights about the ATM network at the link of the Croatian Banking Association.

Since mid-2021, the HGK, in cooperation with the Ministry of Economy and Sustainable Development, the Ministry of Finance, the Croatian National Bank, and HANFA, has been an active participant in this process, organizing more than ten educational events attended by around 3,300 participants. As an instrument in the fight against unjustified price increases, the Ethical Code has been launched as one of the mechanisms contributing to creating a safe environment for consumers. So far, 1,002 companies and crafts have joined the Ethical Code, and a total of 15,465 labels have been issued, mostly from the trade and service sectors.