IMF and Estonia

Estonia has been member of the International Monetary Fund since 1992. The decision of Estonia to join the IMF is reflected by Resolution No 258 of the Supreme Council of the Republic of Estonia (April 1992) "Granting Consent for the Republic of Estonia Becoming Member of the International Monetary Fund, International Bank for Reconstruction and Development, and Pertaining Organisations". In the Board of Governors, Estonia is represented by the Governor of Eesti Pank, and Chancellor of the Ministry of Finance as his Alternate.

Estonia participates in the regular activities of the IMF via the Nordic-Baltic Constituency, which consists of, in addition to Estonia, Denmark, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. Thus, the economic policy related standpoints of Estonia are represented in the Board of the IMF by the Director elected by the above-mentioned eight countries. In 2004-2005, the 'Presidency' of the Constituency is Norway, which includes the position of a Director in the Executive Board, as well as the role of the main co-ordinator in formulating the common standpoint of the Constituency. There are also a Deputy Director and advisors employed in the Washington-located office of the Constituency's Director, which means all the countries of the Constituency are represented.

The aggregated voting right of the Nordic-Baltic Constituency in the IMF is 3.5% (Sweden 1.11%, Norway 0.78%, Denmark 0.77%, Finland 0.59%, Lithuania 0.08%, Iceland 0.07%, Latvia 0.7%, Estonia 0.04%). Additional information concerning the relationship between Estonia and the IMF can be obtained on the IMF home page.

Surveillance of Estonian economic policy

To support the post - restoration-of-independence economic transition, Estonia has used the IMF's Stand-by Arrangements on 6 occasions. However, since 1995 the resources available under the arrangements have not been drawn. Prior to entering into each of the loan agreements, a very specific economic programme was prepared by the Government of the Republic and Eesti Pank, which established the main objectives of the programme period and the instruments needed to achieve the objectives. The economic programmes of the government and Eesti Pank accompanying the loan agreements with the IMF have been the most specific in defining the Estonian economic policy directions and instruments to obtain the set goals.

Estonian last Precautionary Stand-by Arrangement (PSBA) with the IMF expired in August 2001. Cooperation with the IMF has continued in the form of annual economic policy consultations (the so-called Article IV consultations). An IMF mission conducts a two-week visit to Estonia, in the course of which they meet Eesti Pank, governmental authorities, politicians, private sector enterprises, and economic analysts. Occasionally, supplementary visits are arranged, and, on the suggestion of Estonia, technical assistance missions as well. All the reports and publications concerning Estonia can be found on the IMF homepage.