Kallas-Led Bank of Estonia Issued Billion Kroons Worth of Guarantees, Reports Daily ({{commentsTotal}})

European Commissioner for Transport Siim Kallas
European Commissioner for Transport Siim Kallas Source: Photo: Reuters/Scanpix

Documents acquired by daily Eesti Päevaleht reveal that when Siim Kallas led the Bank of Estonia in the beginning of the 90s, over one billion kroons (over 80 million euros) worth of financial guarantees were issued, with Kallas denying the accusation.

One document, signed by Kallas and Vahur Kraft and faxed to Switzerland, says the state bank gave guarantees of 100 million US dollars at the end of 1994, which were good until 2004, to Conor Trading International Ltd.

Had the guarantees been collected, the state would have been in serious financial trouble. The state budget for that year was seven billion kroons (450 million euros).

Kallas told the daily that the bank searched ways to earn Estonia money, but that particular investment scheme he said he can not recall, adding that they did toy with a similar idea, but decided not to pursue the opportunity.

The bank's accounts have no mention of any such guarantee or transaction.