Annual Report 1994. Relations with International Organisations

Estonia has been a member of the International Monetary Fund since 25 May 1992. The Estonian quota is SDR 46.5 million, amounting to approximately 0.03% of the total quota, with a voting right of 0.05%. In December 1994, the second stand-by agreement granted to Estonia by the IMF in the amount SDR 11.625 million matured. At the end of the year, negotiations on the new economic programme were commenced.

On 15 August, Estonia was the 94th country to undertake the obligations of Article VIII of the IMF Articles of Agreement (the total number of IMF member-countries is 179). With this Estonia affirmed to the international community its intention to pursue solid economic policies and making its contribution to a multilateral payment system free of restrictions. The International Monetary Fund has considered Estonian reform policies of the last two years that have created macroeconomic stability successful and has often mentioned Estonia as an example of a successful transition country in Central and Eastern Europe. In order to support the economic programme, Estonia was awarded the second drawing of the systemic transformation facility (STF) in the amount of SDR 11.625 million by IMF. Similarly to the first one, the second tranche will be channelled through local commercial banks for the long-term financing of enterprises.

Close co-operation in the field of banking was also maintained with the World Bank (IBRD), the European Bank for Reconstruction and Development (EBRD), the PHARE programme of the European Union and the Bank for International Settlements. Eesti Pank participated in preparing the USD 10 million loan agreement for the World Bank facilities, intended for supporting the Estonian financial and enterprise sector. As a result of the co-operation between the IMF, PHARE programme of the European Union and the World Bank, a Core Advisors Group was founded in Estonia, the task of which is to assess the suitability of commercial banks for mediating different (foreign) credit lines as well as to assist the banks in on-lending within the framework of these credit lines. A number of experts visited Estonia. Attention was paid to improving the credit granting capabilities of commercial banks, privatising banks, improving the accounting and banking regulations, strengthening banking supervision, etc. Eesti Pank also continued the counselling of the CIS and Baltic countries in different areas concerning central banking.

In order to improve and develop the co-operation between the central banks of the Baltic countries, Eesti Pank organised a joint seminar of the Baltic central banks in summer 1994 where the topics of discussion were the activities of central banks and banking supervision. It is planned to hold discussions between the Baltic countries regularly in the future.