RELATIONS WITH INTERNATIONAL ORGANISATIONS

Estonia's first full year as a member of international financial organisations has been a success. By the end of the year the Estonian quota in the International Monetary Fund (IMF) was 46.5 million SDR[1] which amounts to approximately 840 million kroons. The Estonian quota forms 0.03 percent of the total quota with a voting right of 0.05 percent.

1993 saw the end of the economic programme arranged for the Republic of Estonia in cooperation with the IMF in 1992 in which framework Estonia obtained a loan of 30.225 million SDR (on the basis of a stand-by agreement) for reinforcing the economy. From July to September 1993 negotiations were held between the Government of Estonia, Eesti Pank and the IMF for new credit to be obtained from October 1993. The new loan with a maturity of 17 months was to amount to 11.625 million SDR (approximately 209 million kroons). According to the memorandum signed by the Prime Minister and the President of Eesti Pank in autumn 1993 the IMF has granted Estonia a loan for developing its economy in the amount of 23.25 million SDR. The loan will be in two tranches and be channelled through commercial banks for long-term financing of enterprises.

The President of Eesti Pank was a member of the IMF Joint Procedures Committee in 1993.

In September 1993 a delegation from Eesti Pank participated in the annual meeting of the IMF and the World Bank (IBRD[2]) which included a seminar introducing Estonian economy and banking. Close cooperation with the Bank for International Settlements (BIS) for technical assistance has also occurred. Eesti Pank has been a shareholder of the BIS since 1930 and has 700 shares at the present time (of which 200 are voting shares).

In cooperation with the European Union within the PHARE programme a long term auditing was carried out for Estonian commercial banks. Training courses for the employees of commercial banks on bank accounting were successfully concluded in 1993.

A number of technical aid missions and experts from other international organisations visited Eesti Pank in 1993. In collaboration with them special attention was paid to further improvements in the reporting forms of commercial banks, organizing the activities of the banking supervision and strengthening the banking sector in general.

Mainly due to the authority gained from successful monetary reform in 1992, Eesti Pank (as one of the few central banks of former socialist countries) has been asked to share its experience with others. Special mention should be made of its role as an advisor for compiling balance of payments - Eesti Pank was the first of the former ruble zone countries to produce its balance of payments. The quality of our balance of payments has been noted internationally.

The Table below shows foreign central banks to whom Eesti Pank has given technical assistance.

[1] SDR - special drawing right
[2] International Bank for Reconstruction and Development