Eesti Pank Annual Report 2005

MAIN FEATURES AND FUNCTIONS OF EESTI PANK

FOREWORD BY GOVERNOR OF EESTI PANK

ACCOUNTABILITY

Legal framework for accountability and compulsory publications of the central bank
Accountability vis-à-vis the Riigikogu
Regular reporting on economic policy views and making economic data available to the public

STRATEGIC OBJECTIVES FOR PERFORMING THE MAIN TASKS OF EESTI PANK

MAJOR ACTIVITIES AND ACHIEVEMENTS OF EESTI PANK IN 2005

MONETARY POLICY

Ensuring smooth operation of Estonia's current monetary policy framework
Primary features of Estonian economic policy in regard to monetary stability
Monetary policy in 2005
Preparations for bringing Estonian monetary system into accordance with requirements for joining the euro area
Economic analysis, forecast and research as the basis for grounding monetary and financial policy decisions
Reserve management
Structure of foreign exchange reserves
Investment process
Investment results in 2005 and related factors
Changes in the benchmark portfolio in 2005
Asset management services to the public sector

SAFEGUARDING FINANCIAL STABILITY

The role of Eesti Pank in the financial stability framework
Financial policy and financial environment in 2005
Cross-border integration
Expansive economic environment and loan growth
Regulatory environment
Safeguarding financial sector policy and financial stability
Development of banking regulations in Estonia
Financial sector analysis
Cross-border cooperation and other issues of EU financial policy
Financial safety net

DEVELOPMENTS IN STATISTICS

Banking and other financial statistics
Balance of payments statistics
General economic statistics

PAYMENT SYSTEMS AND MEANS OF PAYMENT

Development of the payment environment
Settlement System of Interbank Payments
Payment methods
Payment systems oversight
Meeting cash demand
Banknotes and coins in circulation and their structure
Currency circulation
Expert analysis of cash
Preparations for the euro cash changeover

PREPARATIONS FOR FULL MEMBERSHIP IN THE EUROPEAN ECONOMIC AND MONETARY UNION (CHANGEOVER TO THE EURO)

Principal features of Estonian economic policy in light of the upcoming accession to the euro area
Prerequisites for membership in the euro area
Technical preparations for full EMU membership
Legal framework
Payment and currency circulation
Internal preparations for the changeover to the euro in Eesti Pank
Public communication related to the euro changeover
Role of Eesti Pank in ESCB today and after the adoption of the euro
European System of Central Banks
Tasks of Eesti Pank as a central bank of a country within the euro area

ORGANISATION AND COOPERATION

INTERNATIONAL COOPERATION
Regular cooperation within the European Union structures
European Central Bank
Council of the European Union and its substructures
European Commission
Cooperation with the International Monetary Fund
COOPERATION WITHIN ESTONIA
Public relations and communications
Central bank's public relations target groups and user surveys
Media relations and public appearances
Eesti Pank Museum
Governance, organisation and personnel policy
Eesti Pank's Governing Bodies and Decision-Making Processes
Governance framework
Eesti Pank's personnel policy

ANNUAL ACCOUNTS OF EESTI PANK for the Financial Year Ended 31 December 2005

Notes to the Annual Accounts of Eesti Pank
Independent Auditors' Report

ANNEXES

GLOBAL ECONOMY IN 2005

ESTONIAN ECONOMY IN 2005

KEY POINTS OF ECONOMIC FORECASTS OF EESTI PANK FOR 2005

DECREES OF THE GOVERNOR OF EESTI PANK IN 2005

PUBLICATIONS OF EESTI PANK IN 2005