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Sovereign wealth funds on euromoney.com

Sovereign wealth funds on euromoney.com

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Abigail Hofman

Abigail Hofman

We’re here to save the world and we don’t need any questions

Monday, May 5, 2008

Convergence report on euro adoption to be published on May 7.





Convergence report on euro adoption to be published on May 7. The convergence report on Slovakia ’s adoption of the euro from January 2009 will be released on May 7. It is to be prepared by the EC and the ECB. The expectations are that the report will recommend the country to enter in the eurozone. The European intuitions, the Economic and Financial Affairs Council (ECOFIN) and the European Parliament will start the formal assessment of the country if it receives the recommendation for the euro adoption. The Council of the EU is expected to give the final confirmation on the country’s entry in the eurozone in July 2008, when the conversation rate will also be announced. We note that analysts expected the crown to be pegged at SKK/EUR 32.50, but the ongoing firming of the crown could lead to a further appreciation of the Slovak currency. Slovakia had to implement a number of steps in order to ensure the smooth process of the new currency introduction. The country had to start a dual display of prices within one month after the announcement of the conversation rate. The introduction of the euro is planned for Jan 1, 2009 and the citizens will use the SKK and the euro simultaneously in the payments until Jan 16.Commercial banks will exchange crown coins for free until June 30, 2009 and banknotes until Dec 31, 2009 . Respectively, the central bank (NBS) will exchange coins until Dec 31, 2013 and banknotes, for which there are no time limit. As recalled, PM Robert Fico and finance minister Jan Pociatek have announced few days ago that Slovakia has fulfilled all convergence criteria for joining the eurozone. The government was also determined to continue respecting the Maastricht criteria even in case the country was rejected entry in the eurozone.


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