Croatia: EUR adoption
Clearstream Banking1 informs customers that effective
1 January 2023
Croatia, which joined the Eurozone in 2013, will convert its national currency from the Croatian Kuna (HRK) to the Euro (EUR) at the official (Central Bank) conversion rate of HRK 7.53450 = EUR 1.00.
Background
On Friday, 20 May 2022, the Croatian parliament passed an Act on the adoption of the Euro as the official currency in the Republic of Croatia.
Article 64 of the above-mentioned Act sets out the general rules for recalculating the nominal value of intangible debt securities and money market instruments:
- The nominal amount of the intangible debt securities issued by the Republic of Croatia in the Kuna will be expressed in nominal amount in Euro, in such a way that the total nominal amount for each individual issue with a single international designation of the financial instrument, in accordance with the ISO 6166 standard recorded in the individual investor account in the Central Clearing Depository Company d.d. divided by a fixed conversion rate, multiplied by an integer of 100, and the result thus obtained will exceptionally be rounded to a lower integer and the converted amount represents a new number of issued debt securities recorded in a particular investor account in the Central Clearing Depository Company.
- The nominal amount of the intangible money market instrument issued by the Ministry of Finance of the Republic of Croatia will be expressed in Euro, in such a way that the nominal amount of each money market instrument specified by the issuer in Kuna is converted into the Euro, by applying the fixed conversion exchange rate referred to in this Act, and thus the converted amount will be rounded up at the fourth decimal point, with the appropriate application of the mathematical rounding rule referred to in this Act.
- The nominal amount of the intangible debt security issued by the Republic of Croatia in Kuna, and indexed to the movement of the exchange rate of the Kuna against the Euro of the HRRHMFO327A5 series code and the HRRHMFO34BA1 series, will be recorded in nominal amount in Euro, in such a way that the total indexed value for each individual issue recorded in each individual issue recorded in the individual investor account in the Central Clearing Depository Company d.d. divided by a fixed conversion rate, multiplied by an integer of 100, and the result thus obtained will exceptionally be rounded to a lower integer, thus representing the recalculated amount represents a new number of issued debt securities recorded in a particular investor account in the Central Clearing Depository Company d.d.
The conversion of the nominal amount and quantity of debt securities and money market instruments shall be carried out free of charge by the Central Clearing Depository Company d.d. on the date of the introduction of the Euro.
The market value of shares listed or traded at trading venues in Kuna will be converted and reported in Euro by the market operator, that is, the manager of the multilateral trading platform on the date of the introduction of the Euro, rounded to the nearest cent using the fixed conversion exchange rate and in accordance with the rules for conversion and rounding referred to in this Act.
Further information
Further details that impact Clearstream Banking customers will be provided in due course.
For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to 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, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.