Croatia: Conversion of HRK to EUR and redenomination procedures - Reminder
Clearstream Banking1 informs customers that effective
1 January 2023
Croatia will convert its national currency from Croatian Kuna (HRK) to Euro (EUR) based on the official (Central Bank) conversion rate which is fixed at EUR 1.00 = HRK 7.53450.
Trading
As announced by the Croatian SE, the following market rules apply for the cutover:
- The last day of trading in Croatian Kuna (HRK) on the Zagreb Stock Exchange (ZSE) is 28 December 2022. Trading will take place in the regular trading hours, between 9:00 CET and 16:00 CET.
- Due to change of the trading currency, all open orders in the trading system will be cancelled on 28 December 2022 after the close of trading.
- No trading will take place on 29 and 30 December 2022 (trading status will be “suspended” throughout the day over that period).
Clearstream Banking will align with the market, therefore customers should take note of the upcoming cutover procedures on the conversion and redenomination into EUR in the Croatian market.
Bridge settlement
As agreed with Euroclear Bank, Bridge settlement for HRK denominated securities will be suspended End of Business day (EOB) on 16 December 2022. All pending Bridge instructions against HRK denominated securities after EOB 16 December 2022 will become invalid and will need to be cancelled.
As of Monday, 19 December 2022, Bridge transactions in HRK currency will not be possible. Settlement on the Bridge for HRK denominated securities will not be possible until 31 December 2022 inclusive. Bridge transactions against previously HRK denominated securities and (not redenominated) HRK denominated securities will resume as soon as the redenomination into EUR has been finalised.
Domestic securities settlement
Bonds
The last settlement date for all bonds including government bonds, corporate bonds and other forms of non-equity securities denominated in HRK will be 28 December 2022.
Settlement deadlines remain the same at 10:55 CET.
Trades with a settlement date between 28 December 2022 and 1 January 2023 will be rejected.
Equities
All equities will settle up to and including 28 December 2022. The settlement deadline will remain the same at 10:55 CET.
Trades with a settlement date between the 28 December 2022 and the 1 January 2023 will be rejected.
Redenomination
Bonds
All government and corporate bonds denominated in HRK will be automatically converted into EUR cents based on the individual owner’s nominal amount of securities.
Equities
All equities will be converted upon the issuer’s instruction.
Cash transactions in HRK
- 16 December 2022 is the last day to settle Euroclear Bridge cash transactions in HRK with value date 16 December 2022.
- 30 December 2022 is the last day to settle HRK cash transactions, deadlines remain the same at 12:00 CET. Customers are encouraged to close any HRK balance left in their Clearstream Banking cash account no later than 30 December 2022, respecting the standard cut-off times.
This can either be done by:- A wire transfer instruction to move the funds outside of Clearstream banking; or
- A foreign exchange instruction to convert the customer's balance from HRK to any other Clearstream-eligible currency.
- Any payment order received after cut-off or with value date 30 December 2022 or later will be rejected.
Cash conversion rules
At the close of business on 30 December 2022, all pending HRK cash transactions will be rejected and any customer HRK cash balances will be converted into EUR.
Debit and credit interest will be applied to the customer cash balances in HRK. These will be charged and credited in EUR from 2 January 2023.
From 1 January 2023, HRK will no longer be accepted as an eligible settlement currency within Clearstream Banking.
Consequently, and with the adoption of the EUR, Clearstream Banking will no longer have a cash correspondent bank in Croatia.
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 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.