Eesti Pank and Riksbank, the central bank of Sweden, have entered into a precautionary arrangement to secure financial stability and to promote
confidence in the financial markets. The contract amount is 10 billion Swedish kronor in exchange for Estonian kroons. The precautionary arrangement will enhance the
capabilities of Eesti Pank to provide liquidity under the currency board agreement.
Eesti Pank entered into a precautionary arrangement
with Riksbank, the central bank of Sweden. The agreement has been drawn up as a preventive measure to strengthen Eesti Pank's ability to safeguard financial stability in Estonia.
"The conclusion of the agreement increases Eesti Pank's capability of ensuring financial stability, primarily guaranteeing liquidity under the currency
board agreement. The precautionary arrangement with Riksbank is an additional step to complement high liquidity and capital buffers the Swedish banks' branches and subsidiaries
operating in Estonia already have. The agreement we entered into today shows also the importance of cross-border cooperation in today's world of integrated financial
markets," said Governor of Eesti Pank Andres Lipstok.
Link to the web site of Riksbank: www.riksbank.se
