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Euro Frontloading to Small Trade
and Service Enterprises
A small trade and service
enterprise (hereinafter referred to
as the microenterprise) means the
enterprise that:
• has less than 10 employees
• annual turnover or the total year-end
balance does not exceed EUR 2 million
(LTL 6,905,600)
Microenterprises may submit applications for the euro frontloading from
1 November 2014 and to accept the euros
at the selected unit of the bank from 27
December 2014 until 31 December 2014.
• The applications will be accepted by
phone if you call us at 19222 or at any
customer service unit of SEB Bankas
from 1 November 2014 until 19 December 2014.
When filling out the application, please
specify the customer service unit of SEB
Bankas, date and time when you may
arrive to sign a Frontloading Agreement
and to accept the euros. It will enable us
to ensure more convenient and faster
services.
• From 27 December 2014 until 31
December 2014, you may arrive to the
selected unit of the bank to sign the
Agreement and to accept the euros.
Use of your bank account in the litas (its
equivalent to the ordered euro) will be
limited and this amount in the litas will
be pledged in favour of the bank.
You may order:
• Banknotes straps only (100 banknotes
of the same denomination per each strap)
• 5 EUR denomination banknote strap – total amount EUR 500
• 10 EUR denomination banknote strap – total amount EUR 1,000
• Standard coin sets (value of EUR 111 or
EUR 200) – not more than 10 coin sets
Maximum amount of the euro that may be
ordered – EUR 10,000.
Recommended actions before applying for euro frontloading
• Take into consideration the amount in the euro that will be necessary until 1 January 2015
(we recommend ordering the amount equal to your working capital for 7 days). We would
like to draw your attention that during the dual circulation period of both currencies, the
need for cash in enterprises may rise from three to five times.
• Take measures to ensure security of the frontloaded euros.
• Ensure that the amount in the litas (specified in your application) available in your
enterprise’s account is equal to the euro amount ordered by you, and calculated according
to the official exchange rate of the litas to the euro – on the date of the ordered cash
acceptance, use of funds available in your account (not exceeding the ordered euro value)
will be limited and this amount will be pledged in favour of the bank.
• Take measures to ensure that a sufficient amount of working capital is available within the
period starting from the day when use of funds in your account in the litas is limited to its
equivalent of the ordered amount in the euro and this amount is pledged in favour of the
bank until 1 January 2015.
• Evaluate whether you have sufficient room for cash (in the litas and the euro) keeping and
storage during the dual circulation period of both currencies from 1 January 2015 until 15 January 2015.
• You may order the card acquiring service offered by SEB Bankas if you still do not use this
service. You will need less cash for giving change, if your clients are able to pay with their
payment cards.
Note
• Only your company director or another person authorised to sign agreements with the
bank will be able to enter in the Agreement and accept the ordered euro.
• If you arrive to any unit of the bank seeking to sign the Agreement or to accept cash at
any other time than you have scheduled, it may take longer as you have to wait in a single
queue.
Customer’s obligations under the euro frontloading agreement
• By filling out the application and signing the Agreement you confirm that the
microenterprise meets the applicable requirements
• The frontloaded euros accepted at the bank unit may not be put in circulation prior to the
euro introduction date – 00:00 (Lithuanian time) on 1 January 2015.
• The frontloaded euros accepted at the bank must be kept in the premises of your
enterprise separately from other euros and from other currencies and also from other
assets of your enterprise so that it is easy to identify them.
• The frontloaded euros accepted at the bank unit must be reflected in the off-balance sheet
and handled separately from other euro banknotes and coins.
• The Bank of Lithuania will be authorised to inspect whether the storage requirements of
the frontloaded euros accepted at the bank are met.
• The Bank of Lithuania is authorised to impose fines pro rata to the incurred damage,
however no less than 10 per cent calculated on the nominal value of the frontloaded euros
accepted at the bank unit, as a result of improper storage and putting into circulation prior
to the date of the euro introduction, and also as a result of not allowing to inspect them.
• Enterprises will have a possibility to accept the frontloaded euros only by providing the
financial collateral, i.e. by pledging the amount in the litas available in the bank account
in favour of the bank that is equivalent to the value of the ordered euros, calculated at
the official exchange rate of the litas to the euro in accordance with the Law on Financial
Collateral Arrangements of the Republic of Lithuania.

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