ZAGREB, January 18 ― The Croatian Prime Minister yesterday urged people to put money they keep at home in banks to facilitate the changeover from the kuna to the euro, which the Balkan nation expects to happen in a year.

Prime Minister Andrej Plenkovic said prices will be displayed in both kuna and euros from September ahead of the introduction of the single currency, which the government hopes will take place next January.

“We urge people who have cash at home to put it in banks now because savings in kunas will be automatically converted into euros,” he said.

Croatia joined the European Union in July 2013, but like other new members from Eastern Europe, has been slow to meet the economic conditions to adopt the European single currency.

The government wants the changeover to be “simple and free of charge for citizens”, Plenkovic said when presenting a bill on the adoption of the euro.

Due to a long-standing lack of trust in institutions and banks, many Croatians keep their cash savings at home.

Officials repeatedly point out the benefits of the introduction of the euro, in particular that it will reduce borrowing costs and stimulate foreign investment in the country, as well as eliminate exchange risks with its main trading partners. .

About 80% of bank deposits are already in euros.

But many Croatians fear that the introduction of the euro will lead to higher prices, including businesses rounding up prices when converting to euros.

Finance Minister Zdravko Maric called it “one of the most important issues”.

He urged “everyone to make sure there is no unwarranted price increase…no shady stuff”.

A Eurobarometer survey last year showed that 61% of Croatians support the changeover to the euro.

Of the 27 EU Member States, 19 currently use the euro as their currency.

Croatia‘s tourism-driven economy remains one of the weakest in the EU.

In October, the average salary was €952 (RM4,543). -AFP