be considered as a clear signal in favour of a more integrated europe. i should like to take the opportunity here to express my gratitude to the european citizens and all parties involved in the changeover for their efforts and their fruitful collaboration with the eurosystem over the years. just to flag some of the efforts made : by the end of 2001, more than 6. 5 billion euro banknotes worth some eur 133 billion and amounting to almost 50 % of national banknote circulation had been frontloaded. with regard to the euro coins, more than 37. 5 billion coins with a total value of around eur 12. 4 billion had been frontloaded. overall, citizens acquired more than 150 million coin starter kits. at the beginning of this week, around 8. 1 billion euro banknotes were in circulation, which is more than 90 % of the number of euro banknotes that had initially been estimated for the end of february 2002. in terms of value, this corresponds to approximately eur 209 billion, which is equivalent to 77 % of national banknotes circulation at the end of 2001. in total, the legacy currency banknotes in circulation declined in 2001 by eur 110 billion to eur 270 billion at the end of the year. since the beginning of 2002, this figure has come down by 51 % to eur 133 billion last monday. the euro progress ratio, which calculates the value of euro banknotes in circulation divided by the total value of euro and national banknotes in circulation, was 61 % on 21 january 2002, up from 33 % on 1 january 2002. given that, in terms of transactions, around 70 % of all banknotes are put into circulation via automated teller machines ( atms ), the quick adaptation of these machines was one of the key factors for a smooth changeover. in total, more than 200, 000 atms had to be converted. in virtually all euro area countries, 100 % of the atms were converted within less than one week. as a result, on average, 75 % of all cash transactions were already effected in euro after only one week. naturally, this figure varied from country to country and from sector to sector. on the whole, the euro banknotes and coins were introduced considerably faster than originally foreseen, not least because of the favourable attitude of and quick acceptance by european citizens. today, even though the technical adaptation of the vending machines has not yet been completed, the cash changeover can be considered

botswana, the botswana institute of bankers, financial markets committee, national payments committee and the banking committee. i am confident that the managing director of capital bank will make a meaningful contribution to the deliberations on this and other issues as he engages in industry - wide consultations, collaboration and information sharing with his counterparts. you are rest assured of support from the bank of botswana through the existing enabling regulatory and supervisory framework, within the context of strict adherence to prudential norms that are in line with best international practice of governance. on a related matter, i want to believe that capital bank ’ s local board of directors will have corporate responsibilities that include ability to make independent judgements in adjusting business strategies and operations in line with local market conditions. while a parent bank has the responsibility to make major policy decisions affecting the group, it is crucial that, within this hierarchical structure, important decisions relating to the day - to - day operations of a subsidiary banks are made in the host country, and not referred on a regular basis to either regional or head offices abroad. otherwise there is a risk of undermining and weakening local management as they will be denied the opportunity to make decisions on the operation of the local business. the fact is that staff will not realise their potential unless there is an enabling environment for them to discharge their responsibilities. some, if not all, of your staff are skilled individuals, and i know that i am speaking to the converted, when i say that successful companies revolve around their people, so long as they are equipped with the requisite ability and room to perform. from this perspective, you are encouraged to identify the best of our citizen staff for key positions in your staff complement, obviously not at the expense of competence, efficiency and effectiveness. last, but not least, i want to believe that customer service will be extended courteously. the staff of capital bank should live up to the setswana sayings : “ maitseo ke namane ya moroba! tlhong botho! ” in english one could say, “ manners maketh a man ”, and a dose of humility makes it even better. needless to say, your customers deserve to be treated with utmost respect. i hasten to add that we live in difficult times as it seems money and morality appear to have meeting point, and greed seems to occupy centre stage. i am referring here to the current major economic turning point in the face of the bubble that burst due to the