OREANDA-NEWS. May 14, 2013. The Supervisory Board of Eesti Pank decided to transfer three quarters of the 34.1 million euros it made in profit last year to strengthen its capital. One quarter of last year's profit, or 8.5 million euros, is to go to the state budget.

“The Supervisory Board of Eesti Pank confirms the long-standing strategy for profit distribution that the central bank gives the state up to 25% of its profit. The Supervisory Board decided today to give the maximum permitted under this strategy. Eesti Pank will cover part of the profit distribution from its share of the income that the central banks of the euro area earned last year from the Greek government bonds bought within the framework of the bond purchase programme” said Chairman of the Supervisory Board of Eesti Pank, Jaan Mannik.

The ratio of Eesti Pank's capital to the risk assets used for monetary policy is the lowest of any of the central banks of the euro area. Last year the Supervisory Board set a long-term goal of increasing its capital to 3.5 times its then level, meaning an increase in capital of around one billion euros to 1.3 billion euros.

The Supervisory Board decided that the relative level of Eesti Pank’s capital should increase to the average level of the central banks of the euro area, as the balance of risks to the capital of the Eurosystem as a whole is considered when joint monetary policy decisions are made.

Last year, Eesti Pank received 51.6 million euros in income from the joint monetary policy and currency issuance activities of the Eurosystem, which is made up of the national central banks of the euro area and the European Central Bank. In 2011 income from this source was 20.2 million euros. Earnings from investment activities were 8.1 million euros last year, and 14.7 million in the previous year. Eesti Pank's operating expenses fell last year to 16.2 million euros from the 19.4 million of 2011.

Since 1992 Eesti Pank has allocated a total of 123 million euros to the state budget.