Lithuania: Conversion of LTL to EUR and redenomination procedures
Effective
1 January 2015
Lithuania will convert its national currency from Lithuanian Litas (LTL) to Euro (EUR) based on the official (Central Bank) conversion rate which is fixed at EUR 1.00 = LTL 3.45280.
Please take note of the following cutover procedures on the conversion and redenomination into EUR in the Lithuanian market.
Bonds
Security Settlement
The last settlement date for all bonds including Government Bonds, Corporate Bonds and other forms of non-equity securities denominated in LTL will be Monday 29 December 2014.
Trades with settlement date between the 30 December 2104 and the 1 January 2015 will be rejected.
The last trading day for Government securities of the Republic of Lithuania including saving notes will be Tuesday 23 December 2014.
Bonds Redenomination
All Government and Corporate bonds denominated in LTL will be automatically converted into EUR cents based on the individual owner’s nominal amount of securities.
Equities
Security Settlement
All equities will settle up to and including Wednesday 31 December 2014. The settlement deadline for against payment transactions will remain the same at 07:50 CET.
The last trading day for stock exchange trades on NASDAQ Vilnius will be Tuesday 30 December 2014.
Equities Redenomination
Currently all on exchange trades settle in EUR but it is possible to settle OTC trades against LTL. From 1 January 2015 all OTC trades nominal capital values will be expressed in whole euros. All equities currently denominated in LTL will be redenominated into EUR.
As all equities will be redenominated into EUR nominal value as from the 1 January 2015, the customers should take note that no separate corporate action notification will be sent to the underlying shareholders.
Cash transactions in LTL
- 30 December 2014 is the last day to settle Euroclear Bridge cash transactions in LTL with value date 30 December 2014.
- 31 December 2014 is the last day to settle LTL cash transactions, there is an early closing deadline of 10:30 CET.
Cash conversion rules
At the close of business on the 31 December 2014 all remaining LTL cash transactions in LTL and any customer LTL cash balances will be converted into EUR.
Debit and Credit interest will be applied to the customer cash balances in LTL. These will be charged and credited in EUR from 2 January 2015.
From 1 January 2015, LTL will no longer be accepted as an eligible currency within Clearstream Banking1.
As a consequence of the adoption of the EUR we will no longer have a cash correspondent bank in Lithuania. To make Euro payments to Clearstream Banking via a CCB customer are requested to use Deutsche Bank AG Frankfurt as follows:
| Currency: | Euro (EUR) via CCB |
| CCB name: | Deutsche Bank AG, Frankfurt |
| CBL account: | DE44 5007 0010 0938 2250 00 |
| SWIFT address: | DEUTDEFF |
or process their payments via TARGET2 as shown in the TARGET2 payment instructions.
Income Payments and Taxation
Dividends, interest and tax reclaims will be paid in EUR from 1 January 2015.
Further information
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.