Estonia, Financial Services, Markets and Companies, Retail

Retailers Association board member Marika Merilai noted that since ATMs do not dispense 500 EUR notes, banks must have issued them. ”If banks dispense 500 EUR banknotes, they also have to guarantee that retailers have the change. Another possibility is that some people get paid in cash when working abroad or they withdraw their wages from the local banks there in 500 EUR notes,” she said.

Wherever people get such costly banknotes, it does not change the fact that there have been cases that people have failed to shop since the store could not give them change for the 500 EUR note.

Merilai said that bigger retail changes have managed but problems have concerned smaller sales venues that have not planned their cash demand correctly.

Banking Association CEO Katrin Talihärm said that there has not been a situation that a bank has run out of smaller bills and has had to offer a client a 500 UER banknote.

“Clients have not realised the amount of money spent on everyday needs. They have exchanged a relatively big amount of kroons that they had at home and thought: “I’ll take a part in larger bills and some in smaller ones”. Now they have used the smaller ones up in stores and it is time to use the 500 EUR note,” Talihärm said.

Friday is the last day when it will be possible to pay both in kroons and euros in shops in Estonia. Starting Saturday, the euro will be the only accepted currency in Estonia.