The Riigikogu passed with 63 votes in favour the Credit Institutions Act and Financial Supervision Authority Act Amendment Act (1017 SE), initiated by the Government of the Republic. The main purpose of the Act is to harmonise the Directives of the European Parliament and Council dealing with capital requirements. Pursuant to these a new concep of capital adequacy will be established for credit institutions. The capital adequacy concept lays out the minimum capital requirement for credit institutions for ensuring sufficient solvency, where assets and off-balance sheet items will be weighed in accordance with their degrees of risk. In addition, distortion of competition is avoided, banking system in the European domestic market strenghtened, with the requirement of the relevant standard operation risk minimum capital of 8 percent, while Member States may also establish a higher level. The valid requirement in Estonian credit institutions is 10 percent. This Act enters into force on 1 January 2007. Nobody voted against the Act and nobody abstained.
On the motion of the Economic Affairs Committee as the leading committee the Riigikogu rejected at the first reading the Bill on Amendments to the Unlawfully Expropriated Property Valuation and Compensation Act (1010 SE), initiated by the Isamaaliit Faction and Res Publica Faction. 44 members of the Riigikogu voted in favour of the Act and 16 against the Act, nobody abstained. The Bill was withdrawn from legislative proceeding.
On the motion of the Estonian Centre Party Faction the Bill on Amendments to the Basic Schools and Upper Secondary Schools Act and Republic of Estonia Education Act (1014 SE), initiated by 17 members of the Riigikogu, was rejected at its first reading. 21 members of the Riigikogu voted in favour of the motion and 12 members of the Riigikogu against, 1 abstained. The Bill was withdrawn from legislative proceeding.
The Riigikogu Press Service
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