CHRONICLE OF MONETARY POLICY OF 1998
MARCH

6 MARCH

Decree of the President of Eesti Pank
On the Consolidated Reporting by Credit Institutions

The decree orders credit institutions to proceed from the manual On the Principles of Consolidated Reporting by Credit Institutions, approved by the Estonian Accounting Board on 6 November 1997, while compiling their consolidated reports, with the exception of Part F of the manual.

The credit institutions are to submit their interim reports for the first three months of 1998 to Eesti Pank two months after the end of the first quarter at the latest, but in future as described in Part B of the manual.

The decree invalidated the Decree of the President of Eesti Pank On the Mandatory Restricted Reserve of Credit Institutions and on Evaluating Short-term Dealing Securities, from 1 March 1996, and the Decree On the Principles of Compiling Consolidated Reports of Credit Institutions, from 8 March 1996 (see Eesti Pank Bulletin No 3, 1996, pp 3-4).

24 MARCH

Riigikogu (the Parliament) of the Republic of Estonia amended the Income Tax Act, retroactively as of 1 January 1998, by restoring the right of the credit institutions to allocate, tax-free, into their loss-covering reserves a sum that can amount to 5% of their loan portfolio.

On 10 September 1997, Riigikogu reduced the tax-free part of the reserve fund to 2% of the loan portfolio; the reduction applied from 1 January 1998.