EN

Notice on adjustment of the Fund’s operations with the euro currency

12.01.2023.

As of 1 January 2023, the euro has become the official currency of the Republic of Croatia, so please take note of the key changes that will, pursuant to the Act on the Introduction of the Euro as the Official Currency in the Republic of Croatia (OG 57/22 and 88/22), apply in the business operations of the Environmental Protection and Energy Efficiency Fund:
 
  1. Contracts/purchase orders as of 1 January
 
  • As of 1 January 2023, valid contracts/purchase orders do not have to be changed, meaning new ones do not have to be concluded/issued 
    • In line with the principle of legal instruments continuity, the process of introduction of the euro shall not affect the validity of legal instruments listed in kuna as the currency, and the existing contracts with the amounts in kuna remain valid after 1 January 2023. As of the day of introduction of the euro as the official currency, the amounts expressed in the above contracts will be considered as amounts expressed in euros applying the fixed conversion rate and in compliance with the conversion and rounding rules.
 
  • New contracts/purchase orders concluded/issued as of 1 January 2023 will be expressed in the euro currency 
    • All legal instruments, including contracts concluded after 1 January 2023, will be drawn up and expressed in the euro as the official currency of the Republic of Croatia.
 
  • Accompanying forms for public calls and calls for proposals for the beneficiaries of resources of the Environmental Protection and Energy Efficiency Fund 
    • The forms in the euro currency are available on the Fund’s website. The amounts listed in the forms based on the contracts concluded before 1 January 2023 shall be expressed in euro as of the day of introduction of the euro as the official currency applying the fixed conversion rate and in compliance with the conversion and rounding rules.
 
 
  1. The initial state in the accounts in the general ledger and analytical records as at 1 January 2023
  • The initial state in the accounts in the general ledger and analytical records as at 1 January 2023 will be expressed in euros, and calculated by converting the final balance amounts in the accounts as at 31 December 2022 according to the fixed conversion rate and the conversion and rounding rules pursuant to the Act on the Introduction of the Euro.

 Accounting documents   
 
  • Accounting documents with the date of issue and receipt before and on 31 December 2022
    • Accounting documents (incoming and outgoing invoices, decisions, billing orders and remittance advice, travel warrants, payrolls, payment orders, interim and payment certificates, etc.) issued before and on 31 December 2022 and received for entry until 31 December 2022, shall be entered and recorded in the business records for 2022 expressed in kunas.
 
  • Accounting documents issued before and on 31 December 2022, received in the period from 1 January 2023 until the closing entries for 2022
    • Bookkeeping documents (incoming and outgoing invoices, decisions, billing orders and remittance advice, travel warrants, payrolls, payment orders, interim and payment certificates, etc.) issued before and on 31 December 2022 and received for entry in the period from 1 January 2023 until the closing entries for 2022, shall be entered and recorded in the business records for 2022 in kunas.
 
  • Bookkeeping documents issued and received as of 1 January 2023 onwards 
    • Bookkeeping documents (incoming and outgoing invoices, decisions, billing orders and remittance advice, travel warrants, payrolls, payment orders, interim and payment certificates, etc.) issued and received on 1 January 2023 onwards, shall be entered and recorded in the business records for 2023 in euros.
 
  • Bookkeeping documents issued until 31 December 2022, received for entry after the closing entries for 2022
    • Bookkeeping documents (incoming and outgoing invoices, decisions, billing orders and remittance advice, travel warrants, payrolls, payment orders, interim and payment certificates, etc.) with the date of issue until 31 December 2022 and received for entry after the closing entries for 2022, i.e. after the business year 2022 has been closed, shall be entered and recorded in the business records for 2023. The amounts expressed in kunas in these bookkeeping documents shall be converted into euros applying the fixed conversion rate and in compliance with the conversion and rounding rules.
 
  • Bookkeeping documents – outgoing invoices, default notices, interest accruals
    • Accounts receivable for outgoing invoices/decisions, default notices, interest accruals and similar, with the date of issue until 31 December 2022, shall be entered and recorded in kunas in the business records for 2022. The final balance of receivables as at 31 December 2022 shall be converted from kunas to euros applying the fixed conversion rate and carried over as the initial state as at 1 January 2023 in euros.
    • Accounts receivable for outgoing invoices/decisions, default notices, interest accruals and similar, issued as of 1 January 2023, shall be entered and recorded in euros in the business records for 2023.
    • Persons subject to the payment of invoices/decisions, default notices, interest accruals and similar issued in kuna before the period of dual display issues, in the case they pay their obligation as of 1 January 2023 onwards, shall settle it in euros by converting it to euro applying the fixed conversion rate and in compliance with the conversion and rounding rules under the Act on the Introduction of the Euro.
 
   3. Public procurement procedures initiated in 2022, with the tender submission deadline in 2023 
 
  • In public procurement procedures initiated in 2022, for which the deadline for the submission of tenders is in 2023, the estimated value of procurement is expressed in kunas. The euro is selected as bid currency, seeing as the currency is transferred into the bid sheet. The data comprising a financial value such as economic and financial capacity requirements and their minimum levels, technical and expert competence requirements (references) and their minimum levels, shall be expressed in kunas. The tender documents must state the contracting authority shall convert and round the values expressed in kunas to euros in accordance with the Act on the Introduction of the Euro. The bid price must be expressed in euros. The information about the share of subcontractors, if the information about the value of their share in the performance of the contract is required, as well as payment security instruments type, means, and terms and conditions, if required, and a cash deposit, shall be expressed in euros. Contract award notice shall be announced in euros. In simple procurement procedures, the bid must be expressed in euros.
 
  1. Amounts of the incoming and outgoing fees and charges in the euro currency can be found on the website under Fees and charges/Instructions and notifications.
 
  • Pursuant to the provisions of the Act on the Introduction of the Euro, all unit fees and charges of the Fund shall be rounded and expressed in two decimal points, applying the following mathematical rounding rule:
    • If the third decimal is lower than five, the second decimal point remains unchanged   
    • If the third decimal is equal to or higher than five, the second decimal point increases by one.
 
  • Moreover, the provision of Article 15(2) of the Act on the Introduction of the Euro lays down the special rules for conversion and rounding of small value unit prices, which are rounded and expressed in more decimals in accordance with the rules for conversion in Article 4 of Regulation (EC) No. 1103/97.
 
  • Having regard to the foregoing, all small value fees of the Fund with the value of up to HRK 0.18 kuna are rounded to five decimal points, in line with the provision of Article 15(2) of the Act on the Introduction of the Euro and the received explanation of the Ministry of Finance, in compliance with the principle of economy and efficiency.
 
All the above changes shall apply in the business operations of the Fund as of 1 January 2023, pursuant to the legislation in force.

We are hoping that all business activities and cooperation with our partners will continue successfully in conformity with the instructions.