President of the Bank of Estonia Vahur Kraft made a report on the economic activities of the Bank of Estonia in 2003.

The report comprised the analysis of the activities of the Bank of Estonia and a survey of the main trends of the Estonian economy. Addressing the Riigikogu, the President of the Central Bank stressed the importance of continuing reliable budget policy of the state. Only this way the macroeconomical stability of the state will be ensured and financial-political objectives realised. In the near future the main task of the Central Bank will be to guarantee the readiness for change into Euro by the middle of the year 2006.

Chairman of the Management Board of the Financial Supervision Authority Andres Trink made a report on the Annual Report of 2003 of the Financial Supervision Authority.  

Giving a survey of the last year activities of the Financial Supervision Authority, Mr. Trink stated that the financial sector had successfully adapted to the new situation formed after the merger of supervisory agencies in 2002.  Mr. Trink highlighted the development of financial services as a positive trend. ?The increase in loans that is faster than the average of Europe is going on in the most favourable interest environment over the years that has up till now maintained a good profitability and capitalization?, Mr. Trink stated, adding at the same time that in the long run the too rapid rate of the increase in loans involves remarkable risks, increasing the vulnerability of banks in case of negative trends in the real estate and financial markets.

Speaking of future trends, Mr. Trink highlighted the issues becoming more topical, and connected with the prevention of money-laundering and the implementation of international sanctions. ?The financial sector as well as the relevant state authorities play an important role in ensuring the credibility of our financial market and the state as a whole?, Mr. Trink said, at the same time expressing the hope that the importance of this sphere among the state strategies would increase in the near future.

The Riigikogu concluded the first reading of the following Bills:

The Bill on the Accession to the Convention drawn up on the basis of the Treaty on European Union, on Mutual Assistance and Cooperation between Customs Administrations (385 SE), initiated by the Government of the Republic, and the Bill on the Ratification of the Protocol Amending the Agreement on Baltic Parliamentary and Governmental Co-operation between the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania (395 SE), initiated by the Government of the Republic.

Due to the end of the sitting, the first reading of the Draft Resolution of the Riigikogu The Principles of Regulation of the Activities of Electric Monopoly (391 OE), initiated by the Estonian Centre Party Faction, Estonian People?s Union Faction, Isamaaliit Faction and Social Democratic Party Faction, was suspended. The proceeding is resumed at the Wednesday?s sitting.