Eesti Pank has identified two companies that had received 60 large euro coin starter kits with a total value of
11,880 euro in the course of sub-frontloading, but were unable to show any of them to Eesti Pank during the check
carried out on Tuesday.
So far a very small number of companies has received sets of Estonian euro coins and sub-frontloading has been done by
SEB Pank only.
According to preliminary investigation info, ten kits of new euro coins were offered for sale at the gathering of
numismatists in Riga on 14 November.
On Tuesday, Eesti Pank checked four companies that had received coin starter kits. Two of them were able to present all
the sets they had got, whereas two enterprises were unable to present any coin kits.
Frontloading contracts that Eesti Pank has signed with commercial banks state that the euro cash commercial banks
receive must be deposited separately from other cash and in conditions that prevent theft, loss or damage. In addition,
the contracts prescribe that the euro cash frontloaded to commercial banks will be sub-frontloaded to retail companies,
cash handlers or other companies entitled to receive euro cash in advance.
Contracts concluded between Eesti Pank and commercial banks also state that sub-frontloading contracts commercial banks
sign with companies must prescribe that the euro cash companies receive must be deposited separately from other cash
and in conditions that prevent theft, loss or damage.
A very important condition of both frontloading and sub-frontloading contracts is that the euro cash received must not
be released into circulation before the €-day.
Eesti Pank's authorised persons must be allowed access to commercial banks' and companies' euro cash deopsitories to
check whether the storage and depositing conditions are followed. In case of breach of contract by commercial banks or
companies, contractual penalties will apply.
Eesti Pank intends to treat the cases of euro cash mishandling very strictly.
Eesti Pank has been carrying out random checks of commercal banks and enterprises that have received euro cash and
continues to do so. So far there have been no problems with depositing conditions and the amounts of cash distributed
are still there.
The coins that were offered for sale in Riga are no longer on sale.
The producer of Estonia's euro coins is Mint of Finland, where a cash theft was uncovered this autumn. The company has
officially stated that no Estonian euro coins were taken.
An additional check carried out at Eesti Pank confirmed that all euro coins are accounted for and comply with
documents. The cash handler G4S performed an internal check and confirmed that the euro coins Eesti Pank has given to
the company for handling are accounted for and comply with documents.
Euro cash frontloading means the central bank distributes euro cash to commercial banks and sub-frontloading means
commercial banks distribute euro cash to companies. Both cases include contracts and cash is given out against
security, that is, bought out.
The euro coin sets intended for companies reach them as follows: the central bank hands euro cash over to the cash
handler G4S, who prepares starter kits for enterprises. Then G4S transports the kits to commercial banks that have
signed contracts with the central bank. Commercial banks, in turn, distribute the sets to companies that have concluded
sub-frontloading contracts with commercial banks. The large starter kit contains coins in the value of 198 euro and the
small kit in the value of 111 euro.
The distribution of euro cash prior to the €-day is necessary to ensure a smooth changeover to the euro.
Frontloading makes sure banks will be ready to exchange kroons for euro and sub-frontloading allows companies to return
change in euro. Other countries that have adopted the euro have used the same system.
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