Banks may use commercial rates for Euro
On 28 October 2008, the Financial Supervision Authority announced its viewpoint on the matter of the conversion of loan repayments issued in Euros, as an answer to the respective inquiry by the Estonian Banking Association on 22 October 2008. Due to the volume of the viewpoint, the full version can be accessed on the website of the Financial Supervision Authority.
"The Financial Supervision Authority continues to believe that transparency of financial products, awareness of consumers and competition are the best mechanisms for forming a price for financial services, and not unstated interference in restructuring already signed agreements," said member of the Management Board of the Financial Supervision Authority Kilvar Kessler. "It is a complex legal question, as the judicial practice of typical conditions is still developing. "We think that banks do not need to convert Euros only precisely with the quotation given by the Bank of Estonia."
The Financial Supervision Authority believes that the matter of converting Euros could be the object of an agreement or informing between the bank and a client. It is likely that the typical conditions do not unreasonably damage a client if the conditions correspond to certain requirements and conversion takes place only because the client's account does not have Euros.