LAW OF THE REPUBLIC OF ESTONIA
ON THE SECURITY FOR ESTONIAN KROON

Clause 1. Security for Estonian kroon

Estonian kroon (cash in circulation, currency in current accounts and in accounts of a fixed date) is issued fully secured by the gold and convertible foreign exchange reserve of Eesti Pank.

Clause 2. Rate of Estonian kroon

The official rate of Estonian kroon will be determined by Eesti Pank with respect to German mark. Eesti Pank has no right to devalue Estonian kroon. The limit of technical fluctuation of Estonian kroon is 3%.

Clause 3. Exchangeability of Estonian kroon

Eesti Pank guarantees on the territory of the Republic of Estonia the free exchange of Estonian kroon to convertible foreign currencies for current needs of customers, according to the official rate of Eesti Pank.

Clause 4. Changing the amount of currency in circulation

Eesti Pank has the right to change the amount of Estonian kroons in circulation only according to a change of its gold and foreign exchange reserve.

Clause 5. Informing on the security of Estonian kroon

Eesti Pank, at least once a month, makes public information about the amount of its gold and convertible foreign exchnage reserve as well as the amount of Estonian kroon in circulation.

Clause 6. Becoming effective of the law

The present law will become effective on the day Estonian kroon is issued.