Coopers
&Lybrand

Report of the Auditors to Riigikogu and to the Board of Eesti Pank

We have audited the financial statements as at 31 December 1997 on pages 98 to 117. These financial statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these financial statements based upon our audit.

We have conducted our audit in accordance with International Standards of Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on the test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles and significant estimates used by management, as well as evaluating the overall financial statements presentation. We believe that our audit forms a reasonable basis for our opinion.

In our opinion, the financial statements present fairly in all material respects, the financial position of Eesti Pank as at 31 December 1997 and the results of its operations for the year then ended in accordance with the accounting principles adopted by Eesti Pank and the Law of the Central Bank of the Republic of Estonia.

Tallinn 31 March 1998
Coopers & Lybrand

Ruut Mägi                   John D. Hallows
Partner                        Partner