TRANSLATION

EESTI PANK
GOVERNOR'S DECREE

29 December 2000, No 15

Procedure for securities transactions between Eesti Pank and credit institutions

Based on § 15 (5) of the Central Bank Act (RT I 1993, 28, 498; 30, p. 743, amendment; 1994, 30, 463; 1998, 64/65, 1006; 1999, 16, 271) and § 80 (1) of the Credit Institutions Act (RT I 1999, 23, 349; 2000, 35, 222; 40, 250)

Eesti Pank ordains:

  1. To confirm the "Procedure for securities transactions between Eesti Pank and credit institutions" (enclosed).
  2. To enforce the present decree from 1 January 2001.
Vahur Kraft
Governor

Confirmed by
the Governor of Eesti Pank
Decree No 15
of 29 December 2000

PROCEDURE FOR SECURITIES TRANSACTIONS BETWEEN EESTI PANK AND CREDIT INSTITUTIONS

  1. Eesti Pank shall conduct securities purchase transactions with the credit institutions which have concluded an agreement with Eesti Pank on meeting reserve requirement monthly average and calculating foreign assets.
  2. Eesti Pank agrees to buy on each banking day 9.00-16.00 from the credit institutions stated in clause 1 of the present decree the securities complying with the requirements established by the Governor of Eesti Pank Decree No 13 of 22 December 2000.
  3. Eesti Pank offers for the securities offered to it by the credit institutions stated in clause 1 of the present procedure the best market price possible to get for these securities on the secondary market in the moment the securities are offered for sale by a credit institution.
  4. The value day of securities purchase transactions between Eesti Pank and the credit institutions stated in clause 1 of the present procedure is either the same or the next banking day in accordance with an agreement of Eesti Pank and a credit institution. The value day of securities resale transactions carried out by Eesti Pank on the secondary market is, as a rule, the third banking day following the transaction day.
  5. The currency of securities purchase transactions carried out between Eesti Pank and the credit institutions stated in clause 1 of the present procedure is the Estonian kroon. In the case of securities purchase transactions the exchange rate used by Eesti Pank is fixed in accordance with the procedure established by Decree no 14 of the Governor of Eesti Pank of 29 December 2000.
  6. Eesti Pank pays to the credit institution for the securities after the securities have been recorded on the securities account of Eesti Pank.
  7. Starting from the moment the credit institution stated in clause 1 of the present procedure has transmitted its consent to carry out the securities transaction to Eesti Pank, the credit institution is fully liable for all costs and losses Eesti Pank will have in connection with breach or improper fulfilment of the agreed terms and connections related to the transfer of securities, which are the object of the transaction, on the Eesti Pank securities account.