TARGET2-Eesti (Trans-European Automated Real-Time Gross Settlement Express Transfer System)

TARGET as the settlement system of central banks

Previous generation TARGET (Trans-European Automated Real-Time Gross Settlement Express Transfer system) was launched in 1999. It was necessitated by the adoption of the single European currency. It was essential for the achievement of the single monetary policy and for the facilitation of a secure and fast facility for settling euro-denominated payments.

The initial TARGET contained the RTGS systems of its participating countries, the ECB payment mechanism and an interlinking mechanism. Besides the central banks of the EMU Member States, TARGET participants included the United Kingdom, Denmark, Sweden, Poland, Slovenia, Cyprus and as of 20 November 2006 also Estonia.

New generation TARGET - TARGET2

On 24 October 2002, the Governing Council of the European Central Bank decided to replace the existing TARGET with a new system, TARGET2. The objective of the development was to enhance the efficiency of European payment systems and supply options for harmonising the European infrastructure. Hence TARGET2, and TARGET2-Eesti as a part thereof, is a further development of the trans-European real-time settlement system TARGET.

TARGET2 is a settlement system based on a single platform and providing harmonised settlement through a central IT-platform. The decentralised nature of the system has been maintained legally and operationally. For the banks participating in TARGET2 modern means for liquidity management, incl. group-based liquidity management, payment orders management and possibility to reserve liquidity, have been created.

TARGET2 implementation and participants

Banking communities of European countries joined the TARGET2 system in three stages - 19 November 2007, 18 February 2008 and 19 May 2008.

The cross-border settlement system TARGET2-Eesti was launched on 19 May 2008. Besides Eesti Pank, the new settlement system was adopted by Hansapank, SEB Pank, Sampo Pank, Nordea Pank, Eesti Krediidipank, Marfin Pank Eesti AS, and Tallinna Äripank.

TARGET2-Eesti operating hours and fees

TARGET2-Eesti is open for settling payments from 8:00 to 19:00 on every settlement day TARGET2-Eesti is open on all days, except weekends and national holidays (New Year's Day, Good Friday and Easter Monday (according to the calendar applicable at the seat of the ECB), 1 May, Christmas Day and 26 December).

Payment order fees depend on the choice of a fee package. Participants can choose between two packages:
    account fee of EUR 100 per month, plus EUR 0.80 for each transaction
    account fee of EUR 1,250 per month, plus a fee for each transaction depending on the number of transactions per month as follows:


Legal framework of TARGET2-Eesti

EP press release on implementing TARGET2-Eesti

Read more about TARGET2