CHRONICLE OF MONETARY POLICY OF 1997
AUGUST AND SEPTEMBER

28 AUGUST

The shareholders of INKO Balti Pank on their extraordinary general meeting decided to liquidate the bank.

1 SEPTEMBER

Eesti Pank endorsed the decision of the shareholders' general meeting of INKO Balti Pank to voluntarily liquidate the bank, proceeding from Section 1 of Article 77 and Clause 1, Section 1 of Article 70 of the Law on Credit Institutions. In conformity with Article 18 of the Law on Credit Institutions the license issued by Eesti Pank to INKO Balti Pank became invalid as of 2 September 1997.

9 SEPTEMBER

Decisions of the Board of Eesti Pank
On Changing the Composition of the Alloy Used for the 20-sent Coin

In view of the need to make it easier to differentiate between the coins in circulation and to reduce the cost of striking the coins, the Board of Eesti Pank decided to replace the current alloy used for the 20-sent coins with nickel steel. The measurements and design of the coin will remain unchanged. The Board's decision proceeds from Article 2 of the Currency Law and Clause 9, Section 1 of Article 9 of the Law of the Central Bank of the Republic of Estonia.

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On Revoking the License of Eesti Innovatsioonipank (Estonian Innovation Bank)

Having studied the Eesti Pank Banking Supervision documents and information on the repeated violations discovered in the activity of Eesti Innovatsioonipank, and proceeding from Section 3 of Article 9 and Article 18 of the Law of the Central Bank of the Republic of Estonia, the Board of Eesti Pank decided to revoke the license of Eesti Innovatsioonipank as of 10 September 1997, on the force of Clauses 5 and 7 of Article 19 of the Law on Credit Institutions.

Clause 5 of Article 19 of the Law on Credit Institutions authorizes Eesti Pank to revoke the license of a credit institution if the credit institution in question has knowingly provided or published incorrect or misleading data, information or reports; Clause 7 of the same article allows the revoking of the license in case the credit institution violates the law or legal acts derived from the Law on Credit Institutions.

11 SEPTEMBER

It was announced that at the request of Eesti Pank, two international rating agencies have given a credit rating to the Republic of Estonia. The Moody's rating Baa 1 is two and the IBCA rating BBB is one level above the minimum investment grade rating.

17 SEPTEMBER

The jury (chairman Heldur Meerits, members Leo Aadel, Jüri Arrak, Ivar Leimus, Kaupo Pollisinski, Enn Põldroos and Rait Roosve) of a design contest organized by Eesti Pank for commemorative coins to mark the 80th anniversary of the Republic of Estonia, decided to award one second and two third prizes.

There will be an additional round between the authors of the designs code-named 'Valged ööd' and 'Jää vabaks, Eesti meri...' to determine the best design.