Chronicle of Monetary Policy. March 1995

March 7

Decision of the Board of Eesti Pank (Bank of Estonia)
On Establishing Credit Institutions and Procedures of Issuing Licences
In accordance with Clause 3, Article 14 of the Law on Credit Institutions, the Board of Eesti Pank introduced procedures for establishing credit institutions and issuing them licences. Also, procedures for issuing licences to banks, adopted on October 7, 1992, were declared invalid.
Decision of the Board of Eesti Pank
On Establishing Subsidiaries or Branches of Foreign Credit Institutions and Procedures of Issuing Licences
In accordance with Clause 5, Article 22 of the Law on Credit Institutions, the Board of Eesti Pank introduced procedures for establishing subsidiaries or branches of foreign credit institutions in Estonia and issuing them licences. This invalidated the old procedure adopted on February 11, 1992, on applying for and issuing foreign investment licences to foreign investors for establishing commercial banks or participating in them.

March 9

The Government of the Republic of Estonia proposed that the Supervisory Board of the North Estonian Bank expand the bank's share capital at the expense of Eesti Pank's secondary claim, on the condition that these shares will later be subject to privatisation.

March 14

The Government of the Republic of Estonia agreed on the transfer of the 20.3 million kroon debt of the Estonian Social Bank to the North Estonian Bank as the claim of the Ministry of Finance.

March 15

The Supervisory Board of the North Estonian Bank decided to acquire the property, claims and liabilities of the branches of the Estonian Social Bank located in the Tallinn Service Centre and in Narva.

March 24

Decree of Eesti Pank
On the Registration of Branches of Estonian Credit Institutions
In accordance with Articles 7, 8 and 10 of the Law on Credit Institutions, Regulations of Eesti Pank of October 22, 1992, on the registration of branches and agencies of commercial banks and other credit institutions were declared invalid.

Credit institutions operating in Estonia must inform Eesti Pank of opening or closing of branches within ten days after the respective decision is made by a competent executive body.

Decree of Eesti Pank
On the Foundation, Operation and Liquidation of Loan and Savings Co-operatives
In accordance with Articles 4 and 11 of the Law on Credit Institutions, and until the law on co-operative credit institutions is passed, Eesti Pank introduced Regulations on the foundation, operation and liquidation of loan and savings co-operatives, at the same time invalidating the earlier Regulations in force since February 23, 1993.

March 30

The Estonian Social Bank and the North Estonian Bank concluded a contract on the sale and purchase of property, giving up claims and transferring obligations.

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Eesti Pank concluded an agreement with the North Estonian Bank on subscribing to and buying shares of the North Estonian Bank. Eesti Pank will pay for 3,850 shares with a 38.5 million kroon claim against the North Estonian Bank.

March 31

Decree of Eesti Pank
On Changes in the Procedures of Foreign Currency Transactions between Eesti Pank and Authorised Banks
In connection with termination of the Estonian kroon - German mark forward and swap contracts by Eesti Pank, the bank invalidated as of April 1, 1995, its Decree on additions to the regulations of foreign currency transactions between Eesti Pank and authorised banks, issued on March 31, 1994.