EN ECB-P UBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 5 December 2011 
on representation and the payment of quota  shares in the International Monetary Fund 
(CON/2011/97) 
 
Introduction and legal basis  
On 22 November 2011, the European Central Bank (ECB) received a request from Riigikogu (the 
Parliament of Estonia) for an opinion on a draft la w on amendments to legislation governing aspects of 
International Monetary Fund (IMF) membership1 (hereinafter the ‘draft law’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent  of Article 2(1) of Council Decision 98/415/EC of 
29 June 1998 on the consultation of the European Ce ntral Bank by national authorities regarding draft 
legislative provisions2, as the draft law relates to Eesti Pank. In accordance with th e first sentence of 
Article 17.5 of the Rules of Procedure of the Eur opean Central Bank, the Governing Council has adopted 
this opinion. 
 1.  Purpose of the draft laws 
The draft law regulates Eesti Pank’s role in rela tion to Estonia’s IMF membership. Eesti Pank was 
involved in the legislative process and agrees with th e transfer of Estonia’s IMF-related responsibilities 
from the Estonian Government to Eesti Pank. Accordi ng to the draft law, among other things, Eesti Pank 
will represent Estonia in the IMF and be responsible for paying Estonia’s quota share in the IMF and any 
quota increases. 
 2. General observations  2.1 As regards representation under the draft law, th e ECB notes that Eesti Pank will be authorised to 
represent Estonia in the IMF subject to coordinatio n with the Ministry of Finance and in other 
international organisations upon gove rnmental authorisation. Pursuant to Articles 23 and 31.1 of 
the Statute of the European System of Centra l Banks and of the European Central Bank, the 
national central banks are allowed to establish re lations with international organisations and 
perform transactions in fulfilment of their ob ligations towards intern ational organisations.  
                                                 
1  The Law on incurring and implementing proprietary obligations related to the membership of the Republic of Estonia in 
international organisations ( Riigi Teataja  I 2002, 11, 58), Decision of the Parlia ment ‘Consent given to accession of the 
Republic of Estonia to the IMF, IBRD and their affiliated organisations’ ( Riigi Teataja 1992, 18, 258; Riigi Teataja  I 
2002, 11, 58) and the Law on Eesti Pank ( Riigi Teataja  I 1993, 28, 498). 
2  OJ L 189, 3.7.1998, p. 42.  
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2 2.2 As regards financial obligati ons, the draft law provides the legal basis for Eesti Pank to act in 
accordance with Article V of the Articles of Agr eement of the International Monetary Fund and 
Article III, Section 2, of the Articles of Agreem ent of the International Bank for Reconstruction 
and Development and to execute all operations and transactions provided for by these Articles of 
Agreement in Estonia’s name. Accordingly, Ees ti Pank will make payments related to Estonia’s 
IMF membership and any additional quota increase.  The ECB notes that any quota increase will be 
subject to the consent of Riigikogu. 
2.3 Several opinions3 have stated that the tasks performed by  a national central bank must comply with 
the monetary financing prohibition under Article 123 of the Treaty and with Council Regulation 
(EC) No 3603/93 of 13 December 1993 specifying defin itions for the application of the prohibitions 
referred to in Articles 104 and 104b(1) of the Treaty4. Pursuant to Article 7 of Regulation (EC) No 
3603/93, the financing by national central banks of  obligations falling upon the public sector vis-à-
vis the IMF is not regarded as a credit facility wi thin the meaning of Article 123 of the Treaty. 
Recital 14 of Regulation 3603/93 sets out the rationale  of the exemption and confirms that it is 
appropriate to authorise the financing by the na tional central banks of obligations falling upon the 
public sector vis-à-vis the IMF, as this financing r esults in claims which have all the characteristics 
of reserve assets. Therefore, the ECB finds that the obligations assumed by Eesti Pank in relation to 
Estonia’s IMF membership comply with Article  7 of Regulation (EC) No 3603/93 and do not 
infringe the monetary financing prohibition. 
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 5 December 2011. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
3  See the most recent opinions, CON/2011/68 and CON/2011/89. All opinions are published on the ECB’s website at 
www.ecb.europa.eu. 
4  OJ L 332, 31.12.1993, p. 1.