From: thietaniemi@cc.helsinki.fi
Subject: ESTONIAN news (internal affairs)
Organization: University of Helsinki
Date: Tue, 29 Dec 1992 11:07:36 GMT


More Estonian news from Tallinn & Tartu:
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                      ESTONIAN GOVERNMENT

On December 15, the government agreed to begin compiling a list
of unwelcome individuals in order to prevent their entry into
Estonia. The National Migration Board will oversee the work,
which will be coordinated between five governmental departments.
The National Border-Guard Department will forward the names of
those that have violated the border regime, the National Customs
Board will forward names of contraband smugglers, the National
Migration Board will forward those that have violated visa
requirements, the Ministry of Foreign Affairs will provide the
names of persona non grata and the Police department those that
have violated administrative and criminal laws and threaten
Estonian security. The list will be distributed to border posts
and will remain undisclosed.
                           *   *   *
On December 15, the Government decided to liquidate the state
shareholding company "Tallinna Hotellikoondis" (Tallinn Hotel
Association) and establish a corresponding commission. The
commission must, by the end of two months, complete its work and
submit a proposal on the sale and privatisation of the
enterprise.
                           *   *   *
On December 17, the Government approved a decree granting 100
kroons in social aid to those individuals who have been on a
compelled vacation for over three months.

                           RIIGIKOGU

On December 17, the Riigikogu approved the appointment of Hagi
Shein as Director General of Estonian Television by a vote of 51
for and 28 against, and the appointment of Herkki Haldre as
Director General of Estonian Radio by a vote of 47 for and 42
against. As both of these media services are state owned, the
Riigikogu has the right to appoint or dismiss their directors.
                           *   *   *
On December 15, the Riigikogu decided to continue the present
living stipends to pensioners until April 1, 1993. Approximately
273 million kroons will be allocated for this during the 1993
budget's first quarter. An earlier resolution by the Supreme
Council required a new pension law to come into effect on January
1, 1993. In an explanatory letter from Minister of Social Affairs
Marju Lauristin, she stated that application of the pension law
is not possible in the present social and economic conditions and
called for supplementary budget expenditures. The monthly stipend
for pensioners is 273 kroons a month.
                           *   *   *
On December 15, the Riigikogu amended the Budget Law for the
second half of the 1992 budget, allowing the government to take
unused budget reserves and use them to finance other
expenditures. The government is required to inform the Riigikogu
of all changes and expenditures.

                  NEW MEMBER TO THE RIIGIKOGU

The Estonian Election Committee confirmed Mr Daimar Liiv as a
substitute Riigikogu member. Mr Liiv is taking the seat vacated
by Ju"ri Luik, who was recently named Minister without 
portfolio (of Estonian-Russian negotiations). In accordance 
with the constitution, a Riigikogu member abdicates his 
parliamentary responsibilities when confirmed as Minister.

       BANK OF ESTONIA LIQUIDATES TARTU COMMERCIAL BANK

On December 18, the Bank of Estonia decided to end the moratorium
placed on the Tartu Commercial Bank (TCB) and revoke its
operating licence, close all accounts and end the activities of
the bank. At a press conference after the announcement, President
of the Bank of Estonia Siim Kallas stated that the crisis
programme proposed by TCB that called for the return of
outstanding loans, the extension of credits from the Bank of
Estonia and the sale of stocks and property, was not dependable.
Three days earlier, on December 15, shareholders of Tartu
Commercial Bank approved the bank's programme and agreed to
continue the activities of the bank in an attempt to avert
bankruptcy.

The Bank of Estonia's Board chose to liquidate rather than
declare bankruptcy, allowing depositors to receive 70-80 % of
their money back. However, the shareholders will loose all of
their investments in the bank. The Bank of Estonia must now
establish the conditions and deadline for liquidation. Vahur
Kraft, TCB's moratorium administrator, will establish a
commission to oversee the liquidation.

    UNION BALTIC BANK TO MERGE WITH NORTH ESTONIAN BANK LTD


On December 18, the Bank of Estonia approved the planned merger
of the Union Baltic Bank and North Estonian Bank Ltd, two banks
which have been under a moratorium due to their financial
difficulties. The Board of the Bank of Estonia empowered the
bank's president, Siim Kallas, to hold negotiations over the
method and conditions of the merger. The decision to allow the
merger of the two banks was aided by the possibility that part
of their assets, totalling USD 79 million, frozen by the Soviet
Foreign Economic Bank may be recovered. Mr Kallas stated that by
January 18, the final day of the moratorium, the new bank should
be solvent and liquid.

     BANK OF ESTONIA REPRESENTATIVES ADDRESS THE RIIGIKOGU


On December 16, the Riigikogu named Uno Mereste as the Bank of
Estonia's new Chairman of the Board. During his address to the
Riigikogu, Mr Mereste stated that he firmly  plans on continuing
the strong course followed by the kroon. Mr Mereste, who was a
member of the Bank of Estonia's Board, also requested that the
Riigikogu elect new board members with a greater knowledge of
banking and economics. Mr Mereste is a professor of economics and
a member of the Moderates.

                           *   *   *

President of the Bank of Estonia Siim Kallas also addressed the
Riigikogu on December 16 and said that the trustworthy banks in
Estonia will be sorted out by June, 1993. The Bank of Estonia
intends to approve several strategic resolutions, which will aid
in the regulation of banks and filter out weak banks. Commenting
on the requests and speculations to devalue the kroon, Mr Kallas
said that hard currency continues to flow into Estonia, leaving
no reason to devalue the six month old currency. Devaluation, Mr
Kallas explained, would only cause businessmen to loose faith in
the kroon and bring back the old state of affairs. Mr Kallas
stated that the main problem that Estonia must deal with is
inflation, which in the month of November was 9%, but appears to
be slowing.

               UNEMPLOYMENT STATISTICS RELEASED

According to the National Employment Board, there were 12,579
people officially registered as unemployed. Over 2,000 more
people registered as unemployed in the month of November. The
city with the most unemployed is Narva (2,711), followed by
Eastern Virumaa and Kohtla Ja"rve (2,056), Tartu (1,274), Vo~ru
(1,070) and Po~lva (829).

       TWO RUSSIAN BORDER GUARDS VIOLATE ESTONIAN BORDER

On December 17, two Russian border guards illegally crossed into
Estonia at the Kulje border post. According to the Director of
the Estonian Border Guard Department Andrus $$vel, the Russian
soldiers were drunk, behaved in a provocative manner and
threatened others with their firearms, resulting in a situation
that could have lead to an armed conflict. The two soldiers were
detained and handed over to Russian Border Guard authorities.

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the observer
Tapani Hietaniemi, Universitas Helsingiensis
                   urbs fennorum

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