Bank of Estonia Considers Retaining Earnings
The Bank of Estonia ( Photo: Postimees/Scanpix )
The Bank of Estonia board is considering retaining the bank's 2011 earnings to increase the bank's reserves, leaving the state treasury without its customary share.
Both Kalev Kallo, member of the central bank's supervisory board, and Minister of Finance Jürgen Ligi told Postimees that the ongoing debate concerns a sum of 5.5 million euros.
Deputy governor of the bank Ülo Kaasik said the bank plans to increase its capital by one billion euros. The bank has not yet published its 2011 profit figures but an unwritten rule has been that the treasury receives one-fourth of the central bank's annual earnings and deposits it into the national stabilization reserve.
The supervisory board discussed profit distribution on Tuesday but failed to arrive at a decision. Minister Ligi was present at the meeting, but he has no vote on the board. Chairman of the supervisory board Jaan Männik declined to say on Thursday whether he plans to support the motion at the next board meeting in April.