AUDITOR’S REPORT

To Riigikogu and to the Board of Eesti Pank

We have audited the financial statements of Eesti Pank of the year ended 31 December 1998 on pages 92 to 108. 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 a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates used by management, as well as evaluating the overall financial statement presentation. We believe that our audit forms a reasonable basis for our opinion.

In our opinion, the financial statements give a true and fair view of the financial position of Eesti Pank as at 31 December 1998 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.

31 March 1999