The Kremnica Mint is a state-owned mint situated in Kremnica, Slovakia. The predecessor of current Mincovňa Kremnica, š. p. was established in 1328, for nearly seven centuries it has continuously been producing mint articles. Kremnica Mint was established in 1328 when Kremnica was promoted to a free royal town by the Hungarian King Charles Robert of Anjou. Kremnica ducats were well-known because of their good quality and were considered the hardest currency in Central Europe. Available historical records report that 21.5 million ducats were minted at the Kremnica Mint throughout its history. The aggregate value of this amount, measured at today's prices of gold, would be three billion US dollars; the mint became outdated by the beginning of the 20th century, many called for new equipment and for the mint to be moved to Budapest. However, this did not happen until the end of World War I; as the Czech troops invaded Northern Hungary, the Károlyi government ordered to move the equipment and noble metal stock to Budapest.
The Hungarian Government started to mint the first coins with the faulty machines and worn-out dies in Csepel. Coins minted in 1922 bore the KB mint mark; the Czechoslovak government had to set up a new mint as well, since not more than the buildings were left in Kremnica. Work on the new machinery started in 1921. Since the Kremnica Mint has manufactured all the coins used by the Czechoslovak and Slovak state and minted coins for 25 other countries. Since Kremnica was the site of the sole mint of the Czechoslovak state, the Czech protectorate was supplied with coins by Germany, the Czech Republic established its own mint. Kremnica Mint manufactures both circulation coins and commemorative coins for the National Bank of Slovakia, but the Mint's available capacities and quality standards make it capable of supplying coins to other countries worldwide. In March 2013 the Mint won a contract to produce 175 million Sri Lankan 10 Rupee pieces with total value of the contract of 6,032 million USD; this contract is valuable for Kremnica Mint as it succeeded in the field dominated by the Royal Mint.
Kremnica Mint established its own coin shop in 2006. The shop is placed inside the reconstructed historical building from 1450. An exposition of minting is part of the coin shop and it includes a remaining set of a historical striking machines - Vulkan. In addition to historical striking machines, visitors could observe coinage on modern striking machines; the first mint mark on coins minted in Kremnica was C, this was changed to K under Sigismund and K-B. With a decree from 16 June 1766, Maria Theresa uniformized the mint marks of the Austrian Empire, the new alphabetical system showed the importance of the mint: Körmöcbánya received letter B; this was changed back to K. B. temporarily in 1848-49 and in 1868. The K. B. mint mark was used after evacuation of the mint to Budapest until 1922. The Mincovňa Kremnica uses its initials as mint mark. List of oldest companies Homepage Mint Kremnica - short history & photos
Bank of Latvia
The Bank of Latvia is the central bank of Latvia. It carries out economic functions as prescribed by law, it was established in 1922. The principal objective of the Bank of Latvia is to regulate currency in circulation by implementing monetary policy to maintain price stability in Latvia; until 31 December 2013, the bank was responsible for issuing the Lats. The Bank of Latvia administration is located in Riga; the fiscal year for the bank ends on 31 December. On September 7, 1922, the Constitutional Assembly adopted the Law on the Establishment of the Bank of Latvia; the Bank of Latvia was granted emission rights. The Bank's interim statutes were approved on September 19, 1922, with the decision of the Cabinet of Ministers, its initial capital was 10 million lats. On April 24, 1923, Saeima approved the Statute of the Bank of Latvia, signed by President Jānis Čakste on the 2nd July; the bank was headed by a board. The Council consisted of a chairman, a deputy and 11 members, but the board included a director general, his deputy and three directors.
On June 17, 1940, Latvia was occupied and was incorporated in to the USSR on August 5. On July 25, the Law on the Nationalization of Banks and Large Industrial Enterprises was adopted. After the Second World War, both money emission and the Treasury's functions were performed by the USSR State Bank, but the money system of the Latvian SSR was under its full control. On March 2, 1990, the Latvian SSR Supreme Council passed the Law "On Banks" and the decision "On the Bank of Latvia", it determined that the Bank of Latvia - a local central bank - was established - an independent state bank, a money issuing center, a central bank in relation to commercial banks, an organizer of the execution of the state budget and a monetary policy regulator. However, only after the Declaration of 4 May 1990 on the restoration of independence of the Republic of Latvia and the collapse of the USSR with the decision of the Republic of Latvia Supreme Council of 3 September 1991 "On the Reorganization of Banking Institutions in the Territory of the Republic of Latvia", the Bank of Latvia became the only central and issuing bank.
It took over the ownership and structure of the USSR banks, Latvijas Republikānisko banku and other state credit institutions. On March 4, 1992, the Supreme Council of the Republic of Latvia passed the Law "On the Acquisition of the Bank of Latvia established in 1922"; the Bank of Latvia's status as the central bank of the country and the issue bank was definitively consolidated by the laws of the Republic of Latvia "On Banks" and "On the Bank of Latvia" adopted on May 19, 1992. For the first time in Latvia, the independence of the national central bank from the government policy was ensured through legislation; the Law "On the Bank of Latvia" did not envisage its commercial activities, therefore, a decision was taken on the restructuring and privatization of 49 Bank of Latvia branches. Like most central banks of the world, the main goal of the Bank of Latvia is to provide inflation at a certain level. After joining the European Union, until its membership in the Economic and Monetary Union, the Bank of Latvia was able to pursue its monetary policy, provided that it is in line with the common EU interests, does not harm the development of other EU Member States and contributes to economic stability.
Membership in the EU envisages joining EMU and the euro. After joining the EU, Latvia had to demonstrate its ability to meet the EMU accession criteria. One of these criteria was the two-year membership of the Exchange Rate Mechanism II. Latvia joined it on May 2, 2005. ERM II means that at least two years before the euro changeover, the lats had been pegged to euro and the exchange rate of the lats against the euro may fluctuate by no more than +/- 15% against the lats pegging rate in euro. In order to achieve its main goal, as well as entering the EMU, the Bank of Latvia implemented a fixed exchange rate strategy. Fluctuations around the fixed coupling rate are possible within +/- 1%; the Bank of Latvia had been implementing the lats attraction policy since February 1994, when the lats was pegged to the SDR basket of currencies. The lats was pegged to the euro on January 1, 2005. At the beginning of 2006 and 2007, the Bank of Latvia operated a refinancing rate instrument, a rate for travel. In a situation where banks do not intend to use the instruments offered by the Bank of Latvia, the increase of the refinancing rate has a more signaling function.
The Bank of Latvia is managed by the Bank's Management Board. The council consists of 8 people: the president of the bank, his deputy and 6 members of the council; the Bank's Supervisory Council is managed by the President of the Bank of Latvia. The Governing Council of the Bank of Latvia takes decisions on behalf of the Bank of Latvia. For the practical work and operational management of the Bank of Latvia, the Bank Council establishes a permanent board of 6 people; the Bank's President approves the structure of the Bank of Latvia and dismisses the Bank of Latvia's employees. The presidents of the Bank of Latvia: Artūrs Graudiņš Pāvils Sakss Einars Repše Ilmārs Rimšēvičs Economy of Latvia Latvian lats European Central Bank Latvia and the euro Official site of Latvijas Banka Official site of Latvijas Banka
European Central Bank
The European Central Bank is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world. Established by the Treaty of Amsterdam, the ECB is one of the world's most important central banks and serves as one of seven institutions of the European Union, being enshrined in the Treaty on European Union; the bank's capital stock is owned by all 28 central banks of each EU member state. The current President of the ECB is Mario Draghi. Headquartered in Frankfurt, the bank occupied the Eurotower prior to the construction of its new seat; the primary objective of the ECB, mandated in Article 2 of the Statute of the ECB, is to maintain price stability within the Eurozone. Its basic tasks, set out in Article 3 of the Statute, are to set and implement the monetary policy for the Eurozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks and operation of the financial market infrastructure under the TARGET2 payments system and the technical platform for settlement of securities in Europe.
The ECB has, under Article 16 of its Statute, the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins; the ECB is governed by European law directly, but its set-up resembles that of a corporation in the sense that the ECB has shareholders and stock capital. Its capital is €11 billion held by the national central banks of the member states as shareholders; the initial capital allocation key was determined in 1998 on the basis of the states' population and GDP, but the capital key has been adjusted. Shares in the ECB can not be used as collateral; the European Central Bank is the de facto successor of the European Monetary Institute. The EMI was established at the start of the second stage of the EU's Economic and Monetary Union to handle the transitional issues of states adopting the euro and prepare for the creation of the ECB and European System of Central Banks; the EMI itself took over from the earlier European Monetary Co-operation Fund. The ECB formally replaced the EMI on 1 June 1998 by virtue of the Treaty on European Union, however it did not exercise its full powers until the introduction of the euro on 1 January 1999, signalling the third stage of EMU.
The bank was the final institution needed for EMU, as outlined by the EMU reports of Pierre Werner and President Jacques Delors. It was established on 1 June 1998; the first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. While Duisenberg had been the head of the EMI just before the ECB came into existence, the French government wanted Jean-Claude Trichet, former head of the French central bank, to be the ECB's first president; the French argued. This was opposed by the German and Belgian governments who saw Duisenberg as a guarantor of a strong euro. Tensions were abated by a gentleman's agreement in which Duisenberg would stand down before the end of his mandate, to be replaced by Trichet. Trichet replaced Duisenberg as President in November 2003. There had been tension over the ECB's Executive Board, with the United Kingdom demanding a seat though it had not joined the Single Currency. Under pressure from France, three seats were assigned to the largest members, France and Italy.
Despite such a system of appointment the board asserted its independence early on in resisting calls for interest rates and future candidates to it. When the ECB was created, it covered a Eurozone of eleven members. Since Greece joined in January 2001, Slovenia in January 2007, Cyprus and Malta in January 2008, Slovakia in January 2009, Estonia in January 2011, Latvia in January 2014 and Lithuania in January 2015, enlarging the bank's scope and the membership of its Governing Council. On 1 December 2009, the Treaty of Lisbon entered into force, ECB according to the article 13 of TEU, gained official status of an EU institution. In September 2011, when German appointee to the Governing Council and Executive board, Jürgen Stark, resigned in protest of the ECB's "Securities Market Programme" which involved the purchase of sovereign bonds by the ECB, a move, up until considered as prohibited by the EU Treaty; the Financial Times Deutschland referred to this episode as "the end of the ECB as we know it" referring to its perceived "hawkish" stance on inflation and its historical Bundesbank influence.
On 1 November 2011, Mario Draghi replaced Jean-Claude Trichet as President of the ECB. In April 2011, the ECB raised interest rates for the first time since 2008 from 1% to 1.25%, with a further increase to 1.50% in July 2011. However, in 2012–2013 the ECB lowered interest rates to encourage economic growth, reaching the low 0.25% in November 2013. Soon after the rates were cut to 0.15% on 4 September 2014 the central bank reduced the rates by two thirds from 0.15% to 0.05%, the lowest rates on record. In November 2014, the bank moved into its new premises; the primary objective of the European Central Bank, set out in Article 127 of the Treaty on the Functioning of the European Union, is to maintain price stability within the Eurozone. The Governing Council in October 1998 defined price stability as inflation of under 2%, “a year-on-year increase in the Harmonised Index of Consumer Prices for the euro area of below 2
Stability and Growth Pact
The Stability and Growth Pact is an agreement, among the 28 member states of the European Union, to facilitate and maintain the stability of the Economic and Monetary Union. Based on Articles 121 and 126 of the Treaty on the Functioning of the European Union, it consists of fiscal monitoring of members by the European Commission and the Council of Ministers, the issuing of a yearly recommendation for policy actions to ensure a full compliance with the SGP in the medium-term. If a Member State breaches the SGP's outlined maximum limit for government deficit and debt, the surveillance and request for corrective action will intensify through the declaration of an Excessive Deficit Procedure; the pact was outlined by a resolution and two council regulations in July 1997. The first regulation "on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies", known as the "preventive arm", entered into force 1 July 1998; the second regulation "on speeding up and clarifying the implementation of the excessive deficit procedure", known as the "dissuasive arm", entered into force 1 January 1999.
The purpose of the pact was to ensure that fiscal discipline would be maintained and enforced in the EMU. All EU member states are automatically members of both the EMU and the SGP, as this is defined by paragraphs in the EU Treaty itself; the fiscal discipline is ensured by the SGP by requiring each Member State, to implement a fiscal policy aiming for the country to stay within the limits on government deficit and debt. As outlined by the "preventive arm" regulation, all EU member states are each year obliged to submit a SGP compliance report for the scrutiny and evaluation of the European Commission and the Council of Ministers, that will present the country's expected fiscal development for the current and subsequent three years; these reports are called "stability programmes" for eurozone Member States and "convergence programmes" for non-eurozone Member States, but despite having different titles they are identical in regards of the content. After the reform of the SGP in 2005, these programmes have included the Medium-Term budgetary Objectives, being individually calculated for each Member State as the medium-term sustainable average-limit for the country's structural deficit, the Member State is obliged to outline the measures it intends to implement to attain its MTO.
If the EU Member State does not comply with both the deficit limit and the debt limit, a so-called "Excessive Deficit Procedure" is initiated along with a deadline to comply, which includes and outlines an "adjustment path towards reaching the MTO". This procedure is outlined by the "dissuasive arm" regulation; the SGP was proposed by German finance minister Theo Waigel in the mid-1990s. Germany had long maintained a low-inflation policy, an important part of the German economy's strong performance since the 1950s; the German government hoped to ensure the continuation of that policy through the SGP, which would ensure the prevalence of fiscal responsibility, limit the ability of governments to exert inflationary pressures on the European economy. As such, it was described to be a key tool for the Member States adopting the euro, to ensure that they did not only meet the Maastricht convergence criteria at the time of adopting the euro, but kept on to comply with the fiscal criteria for the following years.
The Pact has been criticised by some as being insufficiently flexible and needing to be applied over the economic cycle rather than in any one year. They fear that by limiting governments' abilities to spend during economic slumps it may hamper growth. In contrast, other critics think; this is amply evidenced by the “creative accounting” gimmickry used by many countries to achieve the required deficit to GDP ratio of 3 percent, by the immediate abandonment of fiscal prudence by some countries as soon as they were included in the euro club. The Stability Pact has been watered down at the request of Germany and France."Some remark that it has been applied inconsistently: the Council of Ministers failed to apply sanctions against France and Germany, while punitive proceedings were started when dealing with Portugal and Greece. In 2002 the European Commission President Romano Prodi described it as "stupid", but was still required by the Treaty to seek to apply its provisions; the Pact has proved to be unenforceable against big countries such as France and Germany, which were its strongest promoters when it was created.
These countries have run "excessive" deficits under the Pact definition for some years. The reasons that larger countries have not been punished include their influence and large number of votes on the Council of Ministers, which must approve sanctions; the Pact was further weakened in 2005 to waive Germany's violations. In March 2005
2 euro cent coin
The 2 euro cent coin has a value of one-fiftieth of a euro and is composed of copper-plated steel. All coins have country-specific obverse; the coin was not redesigned in 2007 as were the higher-value coins. The coin dates from 2002, when euro coins and banknotes were introduced in the twelve-member eurozone and its related territories. Despite this, a few coins were issued beginning in 1999; the common side was designed by Luc Luycx, a Belgian artist who won a Europe-wide competition to design the new coins. The design of the 1 to 5 cent coins was intended to show the European Union's place in the world as opposed to the one and two euro coins showing the 15 states as one and the 10- to 50-cent coins showing separate EU states; the national sides 15 were each designed according to national competitions, though to specifications which applied to all coins, such as the requirement of including twelve stars. National designs were not allowed to change until the end of 2008, unless a monarch died or abdicated.
This happened in Monaco and the Vatican City, resulting in three new designs in circulation. National designs have seen some changes due to new rules stating that national designs should include the name of the issuing country; as the EU's membership has since expanded, with further expansions envisaged, the common face of all euro coins from the value of 10 cents and above was redesigned in 2007 to show a new map. The 1- to 5-cent coins, did not change, as the highlighting of the old members over the globe was so faint it was not considered worth the cost, but new national coin designs were added in 2007 with the entry of Slovenia, in 2008 with Cyprus and Malta, in 2009 with Slovakia, in 2011 with Estonia, in 2014 with Latvia, in 2015 with Lithuania. The coins are composed of copper-covered steel, with a diameter of 18.75 mm, a 1.67 mm thickness and a mass of 3.06 grams. The edges are smooth with a continuous groove running round the coin; this groove helps distinguish the 2-cent coin from the smooth 1- and 5-cent coins, as well as the U.
S. penny, which has the same diameter. The coins have been used from 2002, though some are dated 1999, the year the euro was created as a currency, but not put into general circulation; the reverse displays a globe in the bottom right. The then-fifteen members of the EU are highlighted and the northern half of Africa and the western half of Asia are shown. Six fine lines cut diagonally behind the globe from each side of the coin and have twelve stars at their ends. To the top left is a large number 2 followed, in smaller text, by the words "Euro Cent"; the designer's initials, LL, appear to the right of the globe. The obverse side of the coin depends on the issuing country. All have to include twelve stars, the engraver's initials, the year of issue. New designs have to include the name or initials of the issuing country; the side cannot repeat the denomination of the coin unless the issuing country uses an alphabet other than Latin. Austria and Greece will at some point need to update their designs to comply with guidelines requiring them to include the issuing state's name or initial, to not repeat the denomination of the coin.
In addition, there are several EU states. Some of them have agreed upon their coin designs, but it is not known when they will adopt the currency, hence these are not yet minted. See Enlargement of the eurozone for expected entry dates of these countries; the one- and two-cent coins were introduced in order to ensure that the introduction of the euro was not used as an excuse by retailers to round up prices. However, due to the cost to business and the mints of maintaining a circulation of low value coins, Ireland and the Netherlands round prices to the nearest five cents for cash payments, producing only a handful of those coins for collectors rather than general circulation. Despite this, the coins are still legal tender and produced outside these states, so if a customer with a two-cent coin minted elsewhere wishes to pay with it, they may; the Dutch Bank calculated. Other countries such as Germany favoured retaining the coins due to their desire for €1.99 prices, which appear more attractive to the consumer than a €2 price.
According to a Eurobarometer survey of EU citizens, 64% across the Eurozone want their removal with prices rounded. Only Portugal and Latvia had a plurality in favour of retaining the coins. In Flemish, the one-, two- and five-cent coins have the nickname koper, roske or rostjes due to their colour. "National sides: 2 cents". European Central Bank. Retrieved 18 August 2009