FREQUENTLY ASKED QUESTIONS
Below are answers to some questions frequently asked from Eesti Pank. If you
do not find an answer to your question or if you feel you did not understand
something, please call our information telephone +372 66 80 719 or send an e-mail
at info@eestipank.ee.
It is also possible to ask questions
here.
This option allows you to decide whether you would like to receive the answer by e-mail or wish it to be published under our FAQs.
EESTI PANK
EURO EXCHANGE RATE. CURRENCY EXCHANGE
THE EURO
SALE OF BANKNOTES, COINS AND OTHER NUMISMATIC-BONISTIC
PRODUCTS
From 1 April 2011, the Museum of Eesti Pank is closed for repairs and enlargement. Over the period of Museum's renovation, the products that have so far been sold at
the museum store (circulation and collector coins, coin sets and folders) can be bought from the e-store of Eesti Pank. The
e-store is operated by Eesti Post, which is the
official reseller of Eesti Pank's numismatic and bonistic products.
Payment for your order can be made by a bank link (Swedbank, SEB), credit card
(VISA, MasterCard) or invoice. The ordered products are sent by mail after Eesti
Post has received the sum into its bank account.
RESERVE REQUIREMENT
DEPOSIT GUANRANTEES
SETTLEMENT OF PAYMENTS
PRIVATISATION VOUCHERS
INTEREST ON OBLIGATIONS
STATISTICS
Pursuant to Eesti Pank Act, the central bank has the right and obligation to collect financial and statistical data necessary for performance of its functions.
Statistical data are published on Eesti Pank's web site at
Eesti Pank's web site.
The release schedule of statistical data is available
here.
For those interested in figures detailing the current economic status (GDP,
price indices, etc.), - the statistical database of Statistics Estonia is available
at http://pub.stat.ee/px-web.2001/dialog/statfile1.asp.
EESTI PANK
How old is Eesti Pank?
Eesti Pank is the legal successor of the Eesti Pank established in 1919. The
bank started operating on 3 May 1919, with 10 million marks of fixed capital.
The central bank did not function during the German and Soviet occupation. Eesti
Pank was reestablished on 1 January 1990. More information on the history of
Eesti Pank is available at the bank's
web site.
Who is Eesti Pank accountable to?
Eesti Pank is accountable to the Riigikogu (see Subsection 3(1) of Eesti
Pank Act).
Eesti Pank is the central bank of the Republic of Estonia and an independent
constitutional institution which is not subordinate to the government or to
any other executive power authority. Eesti Pank is not held liable for the financial
liabilities of the state, nor is the state held liable for the financial liabilities
of the central bank. The highest body of Eesti Pank is its Supervisory Board.
In order for the central bank to ensure monetary and financial stability in
the best way, members of the government are not allowed to belong to the Executive
Board.
Does Eesti Pank exchange currency, open accounts, receive deposits or issue loans?
Eesti Pank's statutory tasks do not include the provision of banking services to private persons and enterprises, exchange of currency and purchase and sale of gold.
Pursuant to Eesti Pank Act,
the central bank has the following tasks:
1) to help to define the monetary policy of the European Community and to implement the monetary policy determined by the Governing Council of the European Central Bank;
2) to hold and manage the official foreign exchange reserves;
3) to promote the smooth operation of the payment systems and the stability of the financial system;
4) to participate in the development of the payment systems and the financial system;
5) to participate in the development of the payment systems and the financial system;
6) to compile the balance of payments of Estonia;
7) to collect and disclosure statistics necessary for the performance of its functions;
8) to perform other functions of Eesti Pank arising from the law.
Did the adoption of the euro change the tasks of Eesti Pank?
The adoption of the euro means that Eesti Pank's representatives now also participate in the formulation of euro-area monetary policy. Naturally, Eesti Pank continues
to perform its national central bank's functions. Eesti Pank implements the ECB's monetary policy decisions, prepares economic analyses and forecasts, manages foreign
exchange reserves, continues issuing cash and performs tasks related to the operation of payment systems and statistics collection. Eesti Pank also continues to
maintain financial stability and to regulate the banking sector. This is done in close cooperation with the Financial Supervision Authority.
What happened to the assets backing the Estonian kroon after Estonia's accession to the euro area?
As a Eurosystem member, Eesti Pank is still obliged to ensure the functioning of the monetary system and the banking system in Estonia. The same principle is applied in all other Eurosystem member states as well.
It is important to emphasise that the cash circulating in Estonia has to be backed by Eesti Pank, not by the ECB's assets. The same applies to the funds and reserve requirements of commercial banks held with Eesti Pank
- the funds deposited with Eesti Pank must be covered by the assets of Eesti Pank.
Just like Eesti Pank used to guarantee kroon circulation, it now has to ensure euro circulation. With the authorisation of the ECB, Eesti Pank is the issuer of the euro in Estonia. Consequently, joining the euro area means the assets of Eesti Pank are still needed in order to ensure currency circulation and the functioning of the banking system.
EURO EXCHANGE RATE. CURRENCY EXCHANGE
Where are the foreign exchange reference rates available as from 1 January 2011?
On 1 January 2011, Estonia replaced the kroon with the euro and Eesti Pank ceased
to publish daily exchange rate fixings. Euro foreign exchange reference rates
are fixed by the European Central Bank. The rates are calculated every working
day based on the combined data of central banks across Europe and worldwide,
usually at 3:15 p.m.(2:15 p.m. C.E.T.) and are published after concentration
procedures on the web at 4 p.m. according to Estonian time (GMT+2). Euro exchange
rates are not published:
 on Saturdays and Sundays;
on 1 January;
on Good Friday;
on Easter Monday;
on 1 May;
on Christmas Day and on Boxing Day.
The latest euro foreign exchange reference rates can be downloaded from the European Central Bank's website at
www.ecb.int/stats/exchange/eurofxref/html/index.en.html.
PDF, CSV, XML
and iPhone
formats are downloadable at Download latest & previous rates.
The reference rates table is equipped with RSS across different currencies.
Useful tips about downloading are available in the section
For developers.
There is also a data warehouse on the ECB's web site providing
historical information for different currencies.
If you need exchange rates that do not belong to the ECB's exchange rates table, we recommend using the quotation of the currency against the euro published on the
website of the respective country's central bank. The list of web addresses of various central banks is available on the web site of the BIS at
www.bis.org/cbanks.htm.
The reference rate of SDR (the settlement unit of the International Monetary Fund) is available on IMF's website at
www.imf.org/external/np/fin/data/param_rms_mth.aspx.
Is it also possible to view Estonian kroon daily fixings?
Historical daily fixings from 19 June 1992 up to 31 December 2010 are available
at Eesti Pank's web site under the heading
Estonian kroon daily fixings.
Just choose the date you are interested in and click Display.
Does Eesti Pank still quote TALIBOR and TALIBID?
Due to the adoption of the euro on 1 January 2011, Eesti Pank stopped quoting TALIBOR and TALIBID on 30 December 2010. Since TALIBOR and TALIBID were quoted for
transactions two days in advance (T+2), the last day of quotation was 29 December 2010.
Historical TALIBOR series are available at Eesti Pank's
web site.
EURIBOR fixings are available at www.euribor.org.
How to obtain an activity licence for opening a foreign exchange bureau?
According to the
Money Laundering and Terrorist Financing Prevention Act, providers
of currency exchange services must register themselves in the register of economic activities before commencing activity in the field.
Pursuant to the register of Economic Activities Act, the Ministry of Economic Affairs and Communications performs the functions of the registrar. Information about
the register is available at http://mtr.mkm.ee/default.aspx. In case of further questions, contact the ministry
by the e-mail info@mkm.ee.
What should be done with banknotes that are no longer valid? Is it possible to replace them?
Information about the validity and replacement of various countries' banknotes and coins is available on the respective country's central bank's web site. The list of web addresses of various central banks is available on the web site of the BIS at www.bis.org/cbanks.htm.
If I have a damaged or mutilated foreign-currency banknote (for example, a dollar or a yen note), where can I replace it? Is there a fee for replacing such banknotes?
As a rule, damaged and mutilated banknotes are replaced by commercial banks. There is no official procedure in Estonia for the replacement of damaged or mutilated foreign-currency banknotes, so it may differ across banks. The same holds for service fees. Turn to bank offices for more specific information.
THE EURO
Can I pay with Finnish and other countries' euro coins in Estonia?
All euro coins are valid in the entire euro area, so it is possible to use the Estonian euro coins in other euro-area countries and the other way around.
For how long is kroon cash still exchanged for euros?
Kroons can be exchanged for euros for an unlimited time.
From the beginning of 2012 the shop of the Eesti Pank Museum exchanges kroons for euros at the central exchange rate (1 euro = 15.6466 Estonian kroons) and without any service fee, in unlimited amounts and for an unlimited period of time. The museum of the central bank is open from 12 to 17 from Tuesday to Friday and from 11 to 16 on Saturdays.
During the first half of 2012 the offices of Swedbank and of SEB all over Estonia will also continue to exchange kroons for euros under the same conditions. In addition, kroons can be exchanged in certain offices of Sampo Pank and Krediidipank. For more information call the banks' customer service.
It will be decided in six months whether the commercial banks will continue to exchange kroons or not.
What should be done with the "white" 1-kroon coins that have been removed from circulation in 1998? Where can I exchange such coins for euros?
1-kroon coins issued in 1992, 1993 and 1995 lost validity on 1 June 1998 but they can be exchanged at the shop of the Eesti Pank Museum during its opening hours: from 12 to 17 from Tuesday to Friday and from 11 to 16 on Saturdays.
Where is it possible to get information about euro cash?
Information about euro banknotes and coins complete with photos and the description of their security features is available at the web sites of the
European Central Bank and
Eesti Pank.
There have been complaints that some traders abroad have refused to accept 100-euro and 200-euro banknotes. Do traders in Estonia have the
right to reject such notes? What should I do if they do so?
Pursuant to the Adoption of the Euro Act,
traders are obliged to accept all banknotes without limitations. However, the
Law of Obligations Act states that traders and consumers have to proceed from the principles of good faith and reasonableness, taking into account usages and
practices in the respective field.
Thus, according to the principle of reasonableness, consumers need to consider which banknotes to use for certain purchases. The banknote used for paying and the
amount to be paid should be reasonably proportional. It is not reasonable to expect the trader to have the necessary amount of change if you pay with a 100-euro note
for a newspaper costing 77 cents.
How many euro coins are traders obliged to accept?
Pursuant to the Adoption of the Euro Act,
traders are obliged to accept up to 50 coins at a time, irrespective of their value.
Is it possible to pay with 1-cent and 2-cent coins in Finland?
In Finland, traders have the right to not accept 1 and 2-cent coins if they display a respective written notice. In this case, the amount is rounded up with 5-cent accuracy.
In Estonia, all euro coins are valid means of payment and traders are obliged to accept them.
What should I do if I discover I have counterfeit cash in my wallet? What should be done to avoid such a situation?
You should get to know the security features of euro banknotes and check the authenticity of cash when receiving it.
To provide an overview of euro banknotes and their security features, Eesti Pank in cooperation with the European Central Bank sent residents of Estonia
information materials by direct mail. A thorough overview is also available at
the web site of the
European Central Bank.
If you think a banknote you have may be counterfeit, turn to the police. A person who was not aware he had been using counterfeit money will not be punished. However,
the necessary procedural acts may take some time. If you turn to a professional money handler (e.g., a bank, currency exchange bureau, etc.) to redeem or a suspicious
banknote, they are obliged to notify the police authorities.
SALE OF BANKNOTES, COINS AND OTHER NUMISMATIC-BONISTIC PRODUCTS
I would like to buy uncirculated kroon banknotes. Are these still on sale and for how long?
Uncirculated film-covered kroon banknotes can be bought from the
e-store of Eesti Pank. The e-store is operated by Eesti Post, which is the official reseller of Eesti Pank's
numismatic and bonistic products.
Where can I find the product and price list of the numismatic-bonistic products?
See Eesti Pank's
web site or e-store.
RESERVE REQUIREMENT
What is the reserve requirement in Estonia?
As from 1 January 2011, the reserve requirement is 2% for liabilities with maturity below two years and 0% for liabilities with maturity over two years.
DEPOSIT GUANRANTEES
How are deposits held with Eesti Pank and with commercial banks guaranteed?
Eesti Pank does not hold any household or corporate deposits.. However, the central bank holds the reserve requirement of commercial banks.
The deposits of commercial bank customers are guaranteed by the Guarantee Fund. The Guarantee Fund is a legal person in public law founded on 1 July 2002. The objective of the Fund is to guarantee the funds of customers of credit institutions and investment institutions and those of unit-holders of mandatory pension funds, thereby increasing the credibility and stability of the financial sector.
On 1 January 2011, the deposit compensation limit increased from 50,000 euros to 100,000 euros per depositor in a credit institution. More detailed information on deposit guarantees is available at
the web site of the Guarantee Fund.
What will happen to my money if my bank becomes insolvent?
Deposits are guaranteed and compensated for along with the interest accrued by the day of termination of the deposit, but not more than in the amount of 100,000 euros per depositor in a credit institution. If deposits are suspended, the Guarantee Fund will notify depositors of the compensation procedure in the media but also on the web sites of the Guarantee Fund and the Financial Supervision Authority. Compensation is paid out within 20 banking days.
Deposits in the subsidiaries of foreign banks (see the list of subsidiaries
at the web site of Financial Supervision
Authority) are guaranteed according to the laws of the countries of location.
For further information see the web site of the Guarantee
Fund.
What will happen to my loans if my bank becomes insolvent?
You must continue paying both the principal amount and interest pursuant to your loan contract and repayment schedule.
What will happen to my securities and pension fund units if my bank becomes insolvent?
The possible insolvency of a bank does not concern customers' securities accounts or securities (shares, debt securities, units, pension fund units). Customers still own all their securities and shares, the bank is only a mediator. The value of shares depends on developments in the securities markets, not on the destiny of the bank.
SETTLEMENT OF PAYMENTS
Can Eesti Pank speed up or delay transfers?
Eesti Pank and presumably also payment service providers (e.g. commercial banks, payment institutions) neither delay transfers nor prevent in any other way the movement of money from the payer to the payee. If you have not received an amount that you know has been transferred to your account, the possible reasons for this (erroneous personal data, etc) can be established at the payment service provider where the payment was initiated. If the payment was performed after the reference time prescribed for receiving payments, the payment will be transferred to the payee's account on the next business day.
At what time does the settlement system of Eesti Pank settle payments?
The settlement system of ordinary payments (ESTA) is open every business day from 8.30 to 18.00. Interbank payments are not settled on national holidays and at weekends. ESTA settles payments ten times a day and is one of the fastest settlement systems in Europe. Banks are notified of incoming payments every full hour from 9.00 to 18.00. On business days the payment reaches the payee in another bank in 3090 minutes. This depends on the time of the initiation of the payment.
Eesti Pank manages also the Trans-European Automated Real-Time Gross Settlement Express Transfer System TARGET2-Eesti, where banks can settle both domestic and cross-border payments. TARGET2-Eesti is open for settling payments from 8.00 to 19.00 on every business day.
For more detailed information about ESTA and TARGET2-Eesti see the website of Eesti Pank (section Payment and settlement systems).
For more detailed information about ESTA and TARGET2-Eesti see the web site of
Eesti Pank (section Payment and settlement systems).
Has Eesti Pank considered keeping interbank settlement systems in operation also at weekends?
Eesti Pank has undertaken the obligation to manage interbank settlement systems following the principle of self-financing. Considering the forecasted number of interbank payment orders during holidays and weekends, it is not expedient to keep the payment and settlement systems functioning seven days a week.
PRIVATISATION VOUCHERS
For how long can I still use my privatisation vouchers?
The period of using privatisation vouchers ended on 31.12.2006. Those who timely submitted applications for compensation for unused privatisation vouchers are paid out the money by 2012.
Further information about privatisation vouchers is available at the web site of the Ministry of Finance (www.fin.ee/ev).
On weekdays from 9.00 to 17.00, it is possible to ask questions about privatisation vouchers by telephone 671 5190.
INTEREST ON OBLIGATIONS
Subsection 94 (1) of the Law of Obligations Act says:
If interest is to be paid on an obligation pursuant to law or the contract, the interest rate shall be applied on a half-year basis and shall be equal to the last
interest rate applicable to the main refinancing operations of the European Central Bank before 1 January or 1 July of each year, unless otherwise provided by the
law or the contract.
What is the size of the rate?
Interest rates are published in the official publication Ametlikud
Teadaanded. The ECB's time series of key interest rates can be found
at www.ecb.int/stats/monetary/rates/html/index.en.html.
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