Statute of Eesti Pank

Approved
by Decision no. 4-1
of 29.04.2025
of the Supervisory Board
of Eesti Pank

Statute of Eesti Pank

Chapter 1
GENERAL PROVISIONS

§ 1. Eesti Pank

(1)       Eesti Pank is the central bank of the Republic of Estonia and a member of the European System of Central Banks, and it abides by the Constitution of the Republic of Estonia, the Constitution of the Republic of Estonia Amendment Act, the Treaty on the Functioning of the European Union, the Statute of the European System of Central Banks and of the European Central Bank, the legal acts of the European Central Bank, the Eesti Pank Act, other laws and this Statute.

(2)       The address of Eesti Pank is Estonia pst 13, Tallinn, Republic of Estonia.

(3)       The purpose, tasks, the supervisory and management bodies of Eesti Pank and their competencies are provided for in the Eesti Pank Act.

(4)       Eesti Pank has its own insignia, the design and rules of use of which are determined by the Supervisory Board of Eesti Pank.

Chapter 2
WORK ORGANISATION OF EESTI PANK

Division 1
Supervisory Board of Eesti Pank

§ 2. Work organisation of the Supervisory Board of Eesti Pank

(1)       The activities of Eesti Pank are supervised by the Supervisory Board of Eesti Pank (hereinafter the Supervisory Board).

(2)       The Supervisory Board operates on the basis of the rules and work plan approved by it.

Division 2
Executive Board

§ 3. Work organisation of the Executive Board

(1)       The activities of Eesti Pank are managed by the Executive Board, which comprises the Governor and Deputy Governors.

(2)       An Executive Board member cannot be the head of a structural unit (department) or agency of Eesti Pank.

(3)       The task of an Executive Board member is to coordinate the activities of the structural units of Eesti Pank in accordance with the strategic goals of Eesti Pank. The structural units and activities coordinated by an Executive Board member constitute the area of responsibility of the member, which is formed and amended on the basis of a directive of the Governor.

(4)       The Executive Board operates and adopts decisions at Executive Board meetings or pursuant to the written procedure on the basis of the rules of procedure approved by it.

(5)       The principles of remuneration of the Executive Board are established by the Supervisory Board.

(6)       Board member agreements with the members of the Executive Board are signed by the Chair of the Supervisory Board.

§ 4. Competence of the Executive Board

(1)       The Executive Board:

1)        submits to the Supervisory Board documents and draft decisions for deciding on matters that fall within the competence of the Supervisory Board and in order to inform the Supervisory Board;

2)        at least twice a year submits to the Supervisory Board an overview of the execution of the budget of Eesti Pank and the activities of Eesti Pank;

3)        immediately informs the Supervisory Board about relevant circumstances and exceptional situations relating to the activities of Eesti Pank;

4)        organises the preparation of the annual accounts of Eesti Pank and submits these pursuant to law and this Statute to auditors for an assurance of correctness at least within four months following the end of the financial year;

5)        approves the statutes of the structural units of Eesti Pank in accordance with section 9 of this Statute;

6)        adopts the strategy of Eesti Pank, submitting it to the Supervisory Board for its opinion beforehand for approval;

7)        approves the rules and principles of work organisation, accounting and remuneration in Eesti Pank, and any other rules and principles regulating the activities of Eesti Pank;

8)        performs other tasks given by the Governor required for the attainment of the objectives and performance of the functions imposed on Eesti Pank by law.

(2)       To perform the functions of Eesti Pank, the Executive Board may establish standing committees, standing or fixed-term (ad-hoc) committees and ad-hoc working groups whose decisions are indicative for the Executive Board and whose status, purpose, members, rights and duties are set out in the establishment decision.

§ 5. Meetings of the Executive Board

(1)       Meetings of the Executive Board are held when necessary and pursuant to the work schedule of the Executive Board, but not less frequently than once a month.

(2)       A meeting of the Executive Board is called by the Governor. An Executive Board meeting is called when a member of the Executive Board or the Chair of the Supervisory requests it.

(3)       An Executive Board meeting is held on the premises of Eesti Pank, unless decided otherwise by the Governor.

§ 6. Quorum of an Executive Board meeting

(1)       An Executive Board meeting has a quorum if at least half of the members of the Executive Board, including the Governor, are present.

(2)       Where necessary, the Governor may invite employees of Eesti Pank, the Chair of the Supervisory Board and other persons who are not members of the Executive Board to a meeting of the Executive Board or to a discussion of individual agenda items.

§ 7. Voting

(1)       Each member of the Executive Board has one vote. An Executive Board member does not have the right to abstain or remain undecided, except in the events provided for in subsection (3) of this section.

(2)       At a meeting of the Executive Board, a decision is adopted by a majority vote. If the votes are equally divided, the vote of the Governor will be the casting vote. In a written procedure, an Executive Board decision is adopted when all members of the Executive Board vote in favour of it.

(3)       An Executive Board member cannot vote where their participation in the adoption of a decision is prohibited by law.

(4)       An Executive Board member has the right to request that their dissenting opinion be recorded in the minutes.

§ 8. Minutes of Executive Board meetings

The minutes of an Executive Board meeting are taken in accordance with the rules of procedure of the Executive Board. The minutes are signed by the Governor and the secretary at minutes.

Division 3
Structural Units and Remuneration of Employees

§ 9. Structural units of Eesti Pank

The structural units of Eesti Pank are departments. The competence, rights, functions and responsibilities of a department are set out in the department’s statute, which is approved by the Executive Board. The statute of the Internal Audit Department is approved by the Supervisory Board.

§ 10. Internal Audit Department

(1)       The Internal Audit Department has been formed as a structural unit of Eesti Pank for the purpose of performing the internal audit function.

(2)       The Internal Audit Department operates on the basis of a work plan approved by the Governor and adopted by the Supervisory Board. The Supervisory Board and the Governor have the right to impose additional tasks on the Internal Audit Department.

(3)       The head of the department reports on their activities to the Governor and, at least twice a year, to the Supervisory Board or, at the request of the Supervisory Board, more frequently.

§ 11. Remuneration

(1)       The salaries of the employees of Eesti Pank are determined by the Executive Board within the limits of the staff expenses allocated in the budget of Eesti Pank.

(2)       The salary of the head of the Internal Audit Department is determined by the Supervisory Board.

(3)       The principles of paying additional remuneration and benefits to the staff are determined by the Executive Board.

Chapter 3
RESERVE CAPITAL, FUNDS FOR SPECIFIC PURPOSES AND RESERVES

§ 12. Increase of reserve capital and coverage of losses

(1)       The sources of increasing the reserve capital are:

1)        the annual profit of Eesti Pank, of which no less than 25% is allocated for that purpose by a decision of the Supervisory Board;

2)        earmarked and other means that have accrued to Eesti Pank, by a decision of the Supervisory Board.

(2)       The reserve capital is used for covering Eesti Pank’s losses.

(3)       If the reserve capital decreases due to losses being offset, the reserve capital will be replenished to the prescribed level from the sources and pursuant to the procedure described in subsection (1) of this section.

§ 13. Funds for specific purposes and reserves

(1)       Eesti Pank's funds for specific purposes are divided into special reserves and other reserves (funds).

(2)       According to rules on the legal framework pertaining to accounting and financial reporting, as provided for in Article 26.4 of the Statute of the European System of Central Banks and of the European Central Bank, the Executive Board of Eesti Pank may form reserves.

§ 14. Special reserve

(1)       At the proposal of the Executive Board, the special reserve of Eesti Pank can be used to cover the losses of Eesti Pank or for other purposes according to a decision of the Supervisory Board of Eesti Pank.

(2)       Eesti Pank’s special reserve is increased by:

1)        allocations from the profit in accordance with subsection 30 (4) of the Eesti Pank Act;

2)        other sources not prohibited by law or this Statute.

§ 15. Other reserves

The procedure for establishing, supplementing and using other reserves is decided by the Supervisory Board on the proposal of the Governor without amending this Statute.

Chapter 4
BUDGET AND AUDITING

§ 16. Budget of Eesti Pank

(1)       The financial activities of Eesti Pank are based on a budget approved by the Governor.

(2)       Preparing the budget is the responsibility of the Executive Board.

(3)       If the Governor has not approved the budget for the new financial year by 1 January, expenses amounting to one-twelfth of the previous year's total expenditure will be allowed per month at the expense of revenues until the new budget is approved.

(4)       Prior to the approval of the budget by the Governor, the Executive Board introduces the draft budget and the budgeting principles to the Supervisory Board. The Supervisory Board expresses an opinion on the draft budget.

§ 17. Auditing

(1)       Eesti Pank’s accounts are audited by independent external auditors recommended by the Governing Council of the European Central Bank and approved by the Council of the European Union.

(2)       The Supervisory Board may use the auditors specified in subsection (1) of this section for further auditing of the activities of Eesti Pank.