Riksbank enters into a precautionary arrangement with the Estonian central bank

Date 27/02/2009

The Riksbank and Eesti Pank, the central bank of Estonia, have entered into a precautionary arrangement to secure financial stability and to promote confidence on the financial markets. Under the agreement, Eesti Pank may borrow up to SEK 10 billion against Estonian kroons. The precautionary arrangement enhances the capabilities of Eesti Pank to provide liquidity under the currency board arrangement.

The Riksbank and the central bank of Estonia, Eesti Pank, have entered into a precautionary arrangement. The agreement has been drawn up as a preventive measure to strengthen Eesti Pank's ability to safeguard financial stability in Estonia.

"It is important that central banks cooperate and assist each other in times of financial stress. The financial systems in Estonia and Sweden are closely linked. The Riksbank is therefore helping to reinforce Eesti Pank's ability to safeguard financial stability in Estonia," says the Governor of the Riksbank, Stefan Ingves.

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