Central bank's accountability

Central bank independence is an integral part of a monetary system ensuring price stability. At the same time, the principles of modern democracies expect any independent institution performing public functions to be accountable for its actions. For Eesti Pank, the autonomous central bank of the Republic of Estonia, accountability entails explaining its economic policy vision and decisions to the citizens of Estonia and their democratically elected representatives in a clear and profound manner. Central bank accountability and independence are two counterbalancing principles.

The scope of accountability of the central bank has been defined in various Estonian laws. Pursuant to the Law on the Security for the Estonian Kroon, the central bank is to publish at least once a month data on the volume of gold and foreign exchange reserves and the amount of Estonian kroons in circulation. These data are published in the form of tables describing the balance sheet of Eesti Pank and foreign exchange reserves backing the kroon. Pursuant to the Official Statistics Act and the Eesti Pank Act, the central bank is entitled as well as obliged to collect and publish monetary, financial and balance of payments statistics in its field of responsibility, according to rules laid down for this purpose. The statistical data are published on the bank's website. The Eesti Pank Act also requires publication of a bulletin at least once every three months in addition to the Annual Report of Eesti Pank. The quarterly bulletins focus on monetary or financial policy issues in turns. The Annual Report includes the annual accounts for the year. The Supervisory Board of Eesti Pank approves the annual report and submits it, together with the auditor's report, to the Riigikogu. Along with the annual report of the central bank the Riigikogu receives the annual report of the Financial Supervision Authority after the report has been approved by its Supervisory Board. Governor of Eesti Pank also makes a presentation in the Riigikogu on the annual report of the central bank.

Accountability vis-à-vis the Riigikogu

Governor of Eesti Pank makes a presentation on the annual report every year. In addition, the bank and the Riigikogu cooperate in the form of meetings and bank representatives give explanations and comments in response to the issues raised by members of the Riigikogu.

The top executives and experts of Eesti Pank meet regularly with the Finance Committee of the Riigikogu in order to explain the central bank's estimates on economic processes and discuss topical issues. Upon request of parliamentary fractions the top executives of Eesti Pank present the views on economic policy developments and activities of the central bank.

Regular reporting on economic policy views and publishing economic data

The central bank's reliability for the public and the transparency of its activities are the preconditions for the smooth operation of the monetary system. Eesti Pank must provide both the general public and the experts with regular, profound and high-quality information on economy. The central bank considers it important to offer easy and low-cost access to data (for example, regular publications of Eesti Pank are free of charge to subscribers and public libraries), and also to provide quality and timely information (for instance, there are very strict requirements for the system of publishing statistical data). In addition to providing information on the website and in various publications, it is possible to request information directly from the bank. Information can be requested by mail, e-mail or phone.