Estonia has been a member of the International Monetary Fund since 1992. Estonia’s accession to the IMF was decided by the Supreme Council of the Republic of Estonia in April 1992 in Decision no 258 “Granting Consent for the Republic of Estonia Becoming a Member of the International Monetary Fund, International Bank for Reconstruction and Development, and Pertaining Organisations”.
Eesti Pank has been responsible for Estonia’s relations with the IMF since accession, and has worked with government institutions in this. This arrangement was confirmed when the law was amended from 24 December 2011 to name Eesti Pank as the official Estonian representative to the IMF, and the Riigikogu changed the Eesti Pank Act and Decision no 258 of the Supreme Council of the Republic of Estonia on 15 December 2012.
The Governor of Eesti Pank represents Estonia in the highest decision-making body of the IMF, the Board of Governors, where he serves as the Governor of Estonia. The government also appoints the Alternate Governor, who is the Secretary General of the Ministry of Finance, to replace the Governor in the Board of Governors if necessary. Eesti Pank coordinates Estonia’s positions with the Ministry of Finance and presents them in the IMF.
The financial relations between Estonia and the International Monetary Fund were revised when the law was. The government transferred to Eesti Pank the financial obligations associated with IMF membership, meaning Eesti Pank organises the payments needed for Estonia’s quota.
The quota is important for a country in its financial and organisational dealings with the IMF. It defines the voting rights of the member state in the IMF and its ability to borrow from the IMF. Estonia’s quota is 93.9 million SDRs or about 111.2 million euros and Estonia’s voting rights give it 0.067% of all the votes.
Estonia’s regular work with the IMF is conducted through the Nordic-Baltic Constituency, which consists of Denmark, Finland, Iceland, Latvia, Lithuania, Norway and Sweden in addition to Estonia. Estonia’s positions on matters of economic policy are represented in the Board of the IMF by the Director appointed by these eight countries. The Constituency uses a rotation system under which it will be chaired by Sweden in 2016-2019, and the standard practice so far has been that the country in the chair has a Director in the Executive Board and the role of the main co-ordinator in setting the common standpoint of the Constituency. From 2020 Finland will take over the chair of the Constituency for three years. There are also a Deputy Director and advisors employed in the Washington office of the Constituency’s Director, through which all the countries of the Constituency are represented.
The aggregated voting right of the Nordic-Baltic Constituency in the IMF is 3.41%, as the individual shares are Sweden 0.98%, Norway 0.78%, Denmark 0.78%, Finland 0.53%, Lithuania 0.10%, Latvia 0.9%, Iceland 0.08%, and Estonia 0.07%.