Abstract
This report on the Observance of Standards and Codes on Data Module is a summary assessment of Estonia's data practices against the IMF's Special Data Dissemination Standard, complemented by an in-depth assessment of the dimensions of data quality that underlie the national accounts, consumer prices, government finance, monetary, and balance-of-payments statistics. Accuracy and reliability are generally good, but could be improved in a few areas of national accounts and in general government data by strengthening source data and improving statistical techniques.
Response by the Republic of Estonia on the Report on the Observance of Standards and Codes (ROSC)—Data Module
I. General Remarks
Bank of Estonia, Ministry of Finance and Statistical Office of Estonia pay much attention to transparency issues as the main aspect of good governance. Estonian authorities share a general perception that transparency issues are especially important for transition and small open economies. Our intention is to follow an open dissemination policy, disseminate good quality data and make freely available a wide variety of data and metadata through official publications, press releases, and on the Internet. Estonia has been a subscriber to Special Data Dissemination System (SDDS) from 1998 and agencies responsible for compiling and disseminating the data are committed to principles of sound and transparent statistical system.
We found the experience of using the Data Quality Assessment Framework (DQAF) on compiling data module of the ROSC most valuable both in general assessment of the statistical system as well as defining areas of concern. We would especially like to stress the importance of each chosen data category in DQAF as we share the Funds view of those being the main data dimensions describing the statistical system. This methodology enables effectively to evaluate the whole system as well as the categories individually. We support the integration of the DQAF into the ROSC and see its benefits in improving the quality of macroeconomic data as well as the transparency of the whole system. To expand the usefulness of the ROSC exercise and increase the commitment, we would support a structured follow up, e.g. to what extent mission recommendations have been implemented. This could, for example be done by sending countries brief questionnaires one or two years after the mission.
As Estonia’s major aim is to join the EU, all the policies and reform agenda, including reform of the statistics, should be seen in the context of EU accession and authorities are working hard to meet those requirements. Bank of Estonia, Ministry of Finance and Statistical Office of Estonia generally agree with the mission’s recommendations and plan to address most of the issues noted in the ROSC in 2002-2003.
A description of the mission’s main recommendations and the authorities’ implementation plans are detailed below.
II. Action Plan from the Estonian Authorities on Fund Staff Proposals
A. National Accounts (Annual and Quarterly)
| Fund Staff Proposals | Statistical Office of Estonia (SOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | Further efforts should be made to establish appropriate arrangements for access by the SOE to tax data from the Estonian National Tax Board. | The SOE has made steps to establish appropriate arrangements for access to the data from the Estonian National Tax Board (ENTB). Up to now, the SOE could use some aggregate data from the ENTB. In the autumn of 2001, further efforts will be made to enable access to the individual data. |
| 2. | In establishing the new economic activity surveys, the SOE should direct particular attention to: reconciliation of quarterly and annual data for the main aggregates; a strategy for estimating and publishing standard errors; and a dissemination strategy that includes provision for advance estimates. |
The SOE has paid much attention to reconciliation of quarterly and annual data. Standard errors of basic data have been estimated, and published in some areas. In the future SOE plans to pay more attention on publishing standard errors. Advance estimates of national accounts have been disseminated in press releases, publications and via Internet. |
| 3. | The national accounts sources and methods publication should be released as soon as possible. It should be updated from time to time and expanded to cover linkages with other systems such as the balance of payments and government finance statistics. | The SOE has posted on its homepage the publication of national accounts sources and methods. The activities on publication of NA sources and methods have been performed in close cooperation with the OECD and Eurostat. The OECD has posted on its homepage the sources and methods of Estonia’s quarterly accounts. The SOE has a common project with Eurostat on updating these data each year. |
| Lower priority | ||
| 4. | The SOE should further pursue the establishment of a national statistical advisory council with appropriate membership, to comprise major users and data suppliers. | The SOE finds the establishment of a national statistical advisory council necessary and will make steps to establish it. |
| 5. | Efforts should be made to progressively reflect agricultural work-in-progress and general government on an accrual basis in the national accounts. | The SOE deals with reflecting agricultural work-in-progress on an accrual basis in the framework of application of the EAA. General government statistics have been reflected on an accrual basis. In July 2001, recalculations were made of the data up to the year 1993. |
| 6. | The SOE should examine the extent to which transactions between related enterprises and establishments reflect transfer (non-market) prices, and the need to make appropriate adjustments to market prices. | As the examination of transactions between related enterprises and establishments requires additional data collection, some problems may arise with the implementation of this proposal. The SOE will consider the matter in the future. |
| 7. | The SOE should be encouraged to make formal studies of trends in the statistical discrepancy, and should clarify what data are preliminary, revised and final in national accounts tables. | The SOE has the data necessary for such analysis. There is no problem with consideration of the proposal, the SOE has started already with the analysis. |
| 8. | The SOE should conduct a small-scale survey of national accounts and also an across-the-board survey of users’ requirements concerning dissemination of statistics generally. | The SOE will conduct a survey of national accounts users’ requirements in the first half of 2002. The survey will be conducted in the frame of contacts with the main users of NA. The SOE has surveyed the users’ requirements concerning dissemination of statistics and plans to continue similar surveys in the future. |
| Fund Staff Proposals | Statistical Office of Estonia (SOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | Further efforts should be made to establish appropriate arrangements for access by the SOE to tax data from the Estonian National Tax Board. | The SOE has made steps to establish appropriate arrangements for access to the data from the Estonian National Tax Board (ENTB). Up to now, the SOE could use some aggregate data from the ENTB. In the autumn of 2001, further efforts will be made to enable access to the individual data. |
| 2. | In establishing the new economic activity surveys, the SOE should direct particular attention to: reconciliation of quarterly and annual data for the main aggregates; a strategy for estimating and publishing standard errors; and a dissemination strategy that includes provision for advance estimates. |
The SOE has paid much attention to reconciliation of quarterly and annual data. Standard errors of basic data have been estimated, and published in some areas. In the future SOE plans to pay more attention on publishing standard errors. Advance estimates of national accounts have been disseminated in press releases, publications and via Internet. |
| 3. | The national accounts sources and methods publication should be released as soon as possible. It should be updated from time to time and expanded to cover linkages with other systems such as the balance of payments and government finance statistics. | The SOE has posted on its homepage the publication of national accounts sources and methods. The activities on publication of NA sources and methods have been performed in close cooperation with the OECD and Eurostat. The OECD has posted on its homepage the sources and methods of Estonia’s quarterly accounts. The SOE has a common project with Eurostat on updating these data each year. |
| Lower priority | ||
| 4. | The SOE should further pursue the establishment of a national statistical advisory council with appropriate membership, to comprise major users and data suppliers. | The SOE finds the establishment of a national statistical advisory council necessary and will make steps to establish it. |
| 5. | Efforts should be made to progressively reflect agricultural work-in-progress and general government on an accrual basis in the national accounts. | The SOE deals with reflecting agricultural work-in-progress on an accrual basis in the framework of application of the EAA. General government statistics have been reflected on an accrual basis. In July 2001, recalculations were made of the data up to the year 1993. |
| 6. | The SOE should examine the extent to which transactions between related enterprises and establishments reflect transfer (non-market) prices, and the need to make appropriate adjustments to market prices. | As the examination of transactions between related enterprises and establishments requires additional data collection, some problems may arise with the implementation of this proposal. The SOE will consider the matter in the future. |
| 7. | The SOE should be encouraged to make formal studies of trends in the statistical discrepancy, and should clarify what data are preliminary, revised and final in national accounts tables. | The SOE has the data necessary for such analysis. There is no problem with consideration of the proposal, the SOE has started already with the analysis. |
| 8. | The SOE should conduct a small-scale survey of national accounts and also an across-the-board survey of users’ requirements concerning dissemination of statistics generally. | The SOE will conduct a survey of national accounts users’ requirements in the first half of 2002. The survey will be conducted in the frame of contacts with the main users of NA. The SOE has surveyed the users’ requirements concerning dissemination of statistics and plans to continue similar surveys in the future. |
B. Consumer Price Statistics
| Fund Staff Proposals | Statistical Office of Estonia (SOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | The SOE should consider the desirability of obtaining prices more frequently (e.g., three or four times per month) for goods and services to considerable short-term price fluctuation. These might include, for example, fresh fruit and vegetables and vehicle fuels. | As the implementation of the proposal requires additional funds, at the time being it is not applicable. |
| 2. | The SOE should review the practice of selecting a sample of three outlets (effectively six outlets in Tallinn as this is divided into two districts) for most of the CPI specifications. There may be a case for increasing the outlet sample size for certain significantly weighted items/specifications. | As the implementation of the proposal requires additional funds, at the time being it is not applicable. |
| Lower priority | ||
| 3. | The SOE should consider broadening the functions of the expert group on the CPI to include provision of advice on alternative methodologies and data sources (within the general framework of international standards and recommendations), the general usefulness of the CPI data produced; and data dissemination strategies. | The SOE finds the proposal reasonable but finding experts having knowledge of the methodology of CPI is complicated. |
| 4. | The SOE should consider conducting a small-scale survey of users of the CPI. | The SOE will conduct a survey of users of the CPI in the first half of 2002. The survey will be conducted in the frame of contacts with the main users of the CPI. |
| 5. | The SOE should review possibilities for basing the sample design for the household budget survey on a household register or an address register. If funds permit, an increase in sample size would be of benefit in reducing standard error information in its HBS publications. | Unfortunately, Estonia has neither household nor address register. Households to be questioned are determined by addresses of persons selected at random from the population register. At the present time financial reasons restrict increasing the sample size. |
| 6. | The SOE should consider publication of more detailed indices and, from time to time, should reassess user demand for a separate CPI for Tallinn. | The SOE will consider publishing more detailed indices. At the same time, there is no special users’ demand for a separate CPI for Tallinn. |
| 7. | The SOE may wish to consider developing and publishing, on an on-going-basis, the imported goods component of the CPI. This would provide a useful indication of the extent to which the CPI is affected by imported goods. | At the present time, it is difficult to distinguish imported and domestic goods, this will need additional funds. The SOE will consider the proposal in the future. |
| Fund Staff Proposals | Statistical Office of Estonia (SOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | The SOE should consider the desirability of obtaining prices more frequently (e.g., three or four times per month) for goods and services to considerable short-term price fluctuation. These might include, for example, fresh fruit and vegetables and vehicle fuels. | As the implementation of the proposal requires additional funds, at the time being it is not applicable. |
| 2. | The SOE should review the practice of selecting a sample of three outlets (effectively six outlets in Tallinn as this is divided into two districts) for most of the CPI specifications. There may be a case for increasing the outlet sample size for certain significantly weighted items/specifications. | As the implementation of the proposal requires additional funds, at the time being it is not applicable. |
| Lower priority | ||
| 3. | The SOE should consider broadening the functions of the expert group on the CPI to include provision of advice on alternative methodologies and data sources (within the general framework of international standards and recommendations), the general usefulness of the CPI data produced; and data dissemination strategies. | The SOE finds the proposal reasonable but finding experts having knowledge of the methodology of CPI is complicated. |
| 4. | The SOE should consider conducting a small-scale survey of users of the CPI. | The SOE will conduct a survey of users of the CPI in the first half of 2002. The survey will be conducted in the frame of contacts with the main users of the CPI. |
| 5. | The SOE should review possibilities for basing the sample design for the household budget survey on a household register or an address register. If funds permit, an increase in sample size would be of benefit in reducing standard error information in its HBS publications. | Unfortunately, Estonia has neither household nor address register. Households to be questioned are determined by addresses of persons selected at random from the population register. At the present time financial reasons restrict increasing the sample size. |
| 6. | The SOE should consider publication of more detailed indices and, from time to time, should reassess user demand for a separate CPI for Tallinn. | The SOE will consider publishing more detailed indices. At the same time, there is no special users’ demand for a separate CPI for Tallinn. |
| 7. | The SOE may wish to consider developing and publishing, on an on-going-basis, the imported goods component of the CPI. This would provide a useful indication of the extent to which the CPI is affected by imported goods. | At the present time, it is difficult to distinguish imported and domestic goods, this will need additional funds. The SOE will consider the proposal in the future. |
C. Balance of Payments Statistics
| Fund Staff Proposals | Bank of Estonia (BOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | In disseminating the data, reference periods that are shown as containing preliminary data should be clearly distinguished from reference periods that contain revised data. | Proposal will be taken into account. |
| Lower priority | ||
| 2. | Portfolio investment transactions should be recorded excluding commissions. | BOP Division is going to introduce the new framework for external sector statistics compilation based on the software developed in New Zealand. All survey forms will be updated since year 2002 - this solves the highlighted question. |
| Fund Staff Proposals | Bank of Estonia (BOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | In disseminating the data, reference periods that are shown as containing preliminary data should be clearly distinguished from reference periods that contain revised data. | Proposal will be taken into account. |
| Lower priority | ||
| 2. | Portfolio investment transactions should be recorded excluding commissions. | BOP Division is going to introduce the new framework for external sector statistics compilation based on the software developed in New Zealand. All survey forms will be updated since year 2002 - this solves the highlighted question. |
D. Government Finance Statistics
| Fund Staff Proposals | Ministry of Finance (MOF) Comments | |
|---|---|---|
| High priority | ||
| 1. | MOF and other agencies (BOE, SOE) should agree on the definition of the institutional coverage of general government and the rest of the public sector that is consistent with ESA95. A list of institutions in each sector should be agreed and applied in the compilation of macroeconomic statistical frameworks. | MOF has prepared amendments to State Budget Law, which will clearly define the sector of general government. The definition is consistent with ESA95 and new GFSM and will be used by all interested parties. Amendments to the budget law will, if approved, be applied from 2002. |
| 2. | Strengthen the staff resources allocated to the compilation of GFS. In line with the practice in countries of a similar size and stage of development, and past practice in Estonia, at least three economists should be assigned to this area. Efforts should be made to document the procedures used for deriving the main GFS aggregates from data sources and the corresponding GFS classifications. | The process of strengthening the staff resources is underway. New economists are hired to deal with GFS matters. Economists have also attended GFS course organized by IMF. Preparing the documentation of GFS procedures is being done starting from clearly documenting the budget classification, which is based on new GFS Manual. |
| 3. | Modify the techniques for compiling monthly general government data, to eliminate the cumulative reporting of these series. | MOF is aware of the problem of cumulative local governments reports. The reports of central government and foreign loans are already on monthly basis and the reporting of local governments will also include cumulative and monthly data when the new budget classification is introduced. |
| 4. | Expand the coverage for statistical purpose of central and general governments. The transactions of the Privatization Agency, Stabilization Reserve Fund, Ownership Reform Fund and state-owned and municipal hospitals should be incorporated in the worksheets used to prepare GFS. Regarding these units, the intergovernmental operations should be identified for the compilation of consolidated data. Similarly, efforts should be made to collect information, on monthly or quarterly basis, on the operations of extra-budgetary funds. | Amendments to the State Budget Law will define the sector of general government and by the definition the Privatization Agency, Ownership Reserve Fund and state-owned and municipal hospitals will be incorporated in worksheets used to prepare GFS. The Stabilization Reserve Fund is already included in general government statistics. |
| 5. | The GFS compilers should meet periodically as needed with relevant staff of the Treasury, BOE, and SOE and make efforts to reconcile the GFS data with data of other statistical frameworks (e.g. monetary statistics, balance of payments and national accounts) | We would like to stress, that the data of those statistical frameworks should be reconciled when amendments to the State Budget Law are approved. Amendments will define the sector of general government (GG) and will lose the difference between the definitions of GG now used by different institutions. If after adopting the same definitions there still differences in statistics, MOF is pleased to meet with other institutions for reconciliation of data. |
| 6. | The MOF should prepare an action plan assigning priorities to the tasks needed to undertake the proposals above in conjunction with the tasks presently undertaken to meet the requirements of EU membership. | •With planned amendments to the State Budget Law and introducing the new budget classification, which has been developed in co-operation with various parties, MOF believes that the requirements of EU membership in this field will be met. |
| Lower priority | ||
| 7. | Attention should be given to the preparation of the migration path to compile GFS on an accrual basis according to the new draft GFS Manual. | Amendments to State Budget Law and new budget classification will give a necessary framework to accrual accounting. The restructuring of state accounting system to be able to compile the accrual data is currently underway and is expected to finish on 2002. |
| 8. | The MOF and SOE should co-ordinate efforts to compile the cross-classification of functional data by economic type using the new Classification of the functions of Government (COFOG) in the new draft GFS Manual. | The new budget classification, which will be introduced from the beginning of 2002, will include the COFOG of new draft GFS Manual. |
| 9. | To meet the data needs of international organizations, the consolidation procedure for compiling data for general government should be revised to avoid eliminating in consolidation the social contributions paid by the government as employer from revenue of the social security funds and from the expenditure of the paying central or local government. Once this procedure is adopted, the consolidated data for earlier years should be revised accordingly. | MOF is compiling the data, and consolidating, using the concepts of existing (1986) GFS Manual. As the new GFS methodology implemented, the social contributions paid by government, as employer will not be eliminated in consolidation. |
| Fund Staff Proposals | Ministry of Finance (MOF) Comments | |
|---|---|---|
| High priority | ||
| 1. | MOF and other agencies (BOE, SOE) should agree on the definition of the institutional coverage of general government and the rest of the public sector that is consistent with ESA95. A list of institutions in each sector should be agreed and applied in the compilation of macroeconomic statistical frameworks. | MOF has prepared amendments to State Budget Law, which will clearly define the sector of general government. The definition is consistent with ESA95 and new GFSM and will be used by all interested parties. Amendments to the budget law will, if approved, be applied from 2002. |
| 2. | Strengthen the staff resources allocated to the compilation of GFS. In line with the practice in countries of a similar size and stage of development, and past practice in Estonia, at least three economists should be assigned to this area. Efforts should be made to document the procedures used for deriving the main GFS aggregates from data sources and the corresponding GFS classifications. | The process of strengthening the staff resources is underway. New economists are hired to deal with GFS matters. Economists have also attended GFS course organized by IMF. Preparing the documentation of GFS procedures is being done starting from clearly documenting the budget classification, which is based on new GFS Manual. |
| 3. | Modify the techniques for compiling monthly general government data, to eliminate the cumulative reporting of these series. | MOF is aware of the problem of cumulative local governments reports. The reports of central government and foreign loans are already on monthly basis and the reporting of local governments will also include cumulative and monthly data when the new budget classification is introduced. |
| 4. | Expand the coverage for statistical purpose of central and general governments. The transactions of the Privatization Agency, Stabilization Reserve Fund, Ownership Reform Fund and state-owned and municipal hospitals should be incorporated in the worksheets used to prepare GFS. Regarding these units, the intergovernmental operations should be identified for the compilation of consolidated data. Similarly, efforts should be made to collect information, on monthly or quarterly basis, on the operations of extra-budgetary funds. | Amendments to the State Budget Law will define the sector of general government and by the definition the Privatization Agency, Ownership Reserve Fund and state-owned and municipal hospitals will be incorporated in worksheets used to prepare GFS. The Stabilization Reserve Fund is already included in general government statistics. |
| 5. | The GFS compilers should meet periodically as needed with relevant staff of the Treasury, BOE, and SOE and make efforts to reconcile the GFS data with data of other statistical frameworks (e.g. monetary statistics, balance of payments and national accounts) | We would like to stress, that the data of those statistical frameworks should be reconciled when amendments to the State Budget Law are approved. Amendments will define the sector of general government (GG) and will lose the difference between the definitions of GG now used by different institutions. If after adopting the same definitions there still differences in statistics, MOF is pleased to meet with other institutions for reconciliation of data. |
| 6. | The MOF should prepare an action plan assigning priorities to the tasks needed to undertake the proposals above in conjunction with the tasks presently undertaken to meet the requirements of EU membership. | •With planned amendments to the State Budget Law and introducing the new budget classification, which has been developed in co-operation with various parties, MOF believes that the requirements of EU membership in this field will be met. |
| Lower priority | ||
| 7. | Attention should be given to the preparation of the migration path to compile GFS on an accrual basis according to the new draft GFS Manual. | Amendments to State Budget Law and new budget classification will give a necessary framework to accrual accounting. The restructuring of state accounting system to be able to compile the accrual data is currently underway and is expected to finish on 2002. |
| 8. | The MOF and SOE should co-ordinate efforts to compile the cross-classification of functional data by economic type using the new Classification of the functions of Government (COFOG) in the new draft GFS Manual. | The new budget classification, which will be introduced from the beginning of 2002, will include the COFOG of new draft GFS Manual. |
| 9. | To meet the data needs of international organizations, the consolidation procedure for compiling data for general government should be revised to avoid eliminating in consolidation the social contributions paid by the government as employer from revenue of the social security funds and from the expenditure of the paying central or local government. Once this procedure is adopted, the consolidated data for earlier years should be revised accordingly. | MOF is compiling the data, and consolidating, using the concepts of existing (1986) GFS Manual. As the new GFS methodology implemented, the social contributions paid by government, as employer will not be eliminated in consolidation. |
E. Monetary Statistics
| Fund Staff Proposals | Bank of Estonia (BOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | The BOE should compile more comprehensive monetary statistics and aggregates from ODCs, such as savings and loan associations, money market and mutual funds, and financial leasing companies, inasmuch as they issue short/term liabilities that are part of broad money. | A comparison of the statistical data currently collected by the BOE with the requirements set out in the ECB Regulation an the recommendations contained in the ECB’s Monetary and Banking Statistics Compilation Guide shows a high degree of consistency in both methodology and data availability. The Bank of Estonia will make further steps to increase the coverage and improve the frequency and timeliness with which data are received from other depository corporations that are not credit institutions. As one of the measures the BOE will strengthen the legal framework, we admit that the present voluntary commitments are sometimes not enough to guarantee the timely and accurate data collection. The legal framework will improve when the Law of Financial Inspection is fully operational starting in January 2002 and an amendment to the Central Bank Law (expected to be approved at beginning of next year will go into force later in year 2002. Taking into account the above mentioned timeframe we will expect to start compiling more comprehensive monetary statistics starting earliest from the last quarter of 2002. |
| 2. | To avoid confusion on the part of data users, the BOE should cease publishing monetary aggregates that include short-term investments and deposits of the central government and of nonresidents. The preferred methodology is that used by the BOE’s Banking Statistics and Analysis Department, which is based on international standards. For internal policy purposes, other approaches to compiling the monetary aggregates may continue to be appropriate. | The dissemination of monetary aggregates has been based on the consideration that potential users should have access to both: internationally comparable aggregates as well as national ones used by BOE on analytical and monetary policy purposes. While disseminating the national monetary aggregates we have followed the principle that the presentation of these aggregates enables the user to derive also the aggregates based on international standards. The aim of that approach has been to provide to the public most comprehensive information. However, we admit that publishing two sets of monetary aggregates can be confusing for data users. In order to avoid possible misunderstandings we will find new and more clear approach for dissemination of monetary aggregates in near future, although, the compiling of national monetary aggregates for internal policy purposes will be continued in BOE as currently. |
| 3. | Consistency between monetary statistics with the comparable data in government finance statistics should be sought on a regular basis. | Being aware that classification of economic agents to institutional sectors is crucial issue for quality of statistics Bank of Estonia, Ministry of Finance and State Statistical Office will continue the harmonization of government sector definition and coverage. The work is based on governmental institutions’ registry established in the beginning of the year 2000. The contract between BOE and MOF about changing information containing in mentioned register was signed in summer 2000. |
| Lower priority | ||
| 4. | For monetary statistics purposes, all short-term securities reported in the sectoral balance sheets of the BOE and ODCs should be valued at market prices or fair values (estimates of market-equivalent values). | For purposes of monetary statistics compilation the recording of all short-term securities at market prices will be introduced in the medium term. |
| 5. | Additional improvements should be made regarding the classification and sectorization of financial derivatives and the inclusion of accrued interest in the outstanding value of financial instruments. | Concerning classification-sectorization of the financial derivatives and inclusion of accrued interest in the outstanding value of financial investments the improvements in the reports will be done. These additions will be implemented in the medium term. |
| Fund Staff Proposals | Bank of Estonia (BOE) Comments | |
|---|---|---|
| High priority | ||
| 1. | The BOE should compile more comprehensive monetary statistics and aggregates from ODCs, such as savings and loan associations, money market and mutual funds, and financial leasing companies, inasmuch as they issue short/term liabilities that are part of broad money. | A comparison of the statistical data currently collected by the BOE with the requirements set out in the ECB Regulation an the recommendations contained in the ECB’s Monetary and Banking Statistics Compilation Guide shows a high degree of consistency in both methodology and data availability. The Bank of Estonia will make further steps to increase the coverage and improve the frequency and timeliness with which data are received from other depository corporations that are not credit institutions. As one of the measures the BOE will strengthen the legal framework, we admit that the present voluntary commitments are sometimes not enough to guarantee the timely and accurate data collection. The legal framework will improve when the Law of Financial Inspection is fully operational starting in January 2002 and an amendment to the Central Bank Law (expected to be approved at beginning of next year will go into force later in year 2002. Taking into account the above mentioned timeframe we will expect to start compiling more comprehensive monetary statistics starting earliest from the last quarter of 2002. |
| 2. | To avoid confusion on the part of data users, the BOE should cease publishing monetary aggregates that include short-term investments and deposits of the central government and of nonresidents. The preferred methodology is that used by the BOE’s Banking Statistics and Analysis Department, which is based on international standards. For internal policy purposes, other approaches to compiling the monetary aggregates may continue to be appropriate. | The dissemination of monetary aggregates has been based on the consideration that potential users should have access to both: internationally comparable aggregates as well as national ones used by BOE on analytical and monetary policy purposes. While disseminating the national monetary aggregates we have followed the principle that the presentation of these aggregates enables the user to derive also the aggregates based on international standards. The aim of that approach has been to provide to the public most comprehensive information. However, we admit that publishing two sets of monetary aggregates can be confusing for data users. In order to avoid possible misunderstandings we will find new and more clear approach for dissemination of monetary aggregates in near future, although, the compiling of national monetary aggregates for internal policy purposes will be continued in BOE as currently. |
| 3. | Consistency between monetary statistics with the comparable data in government finance statistics should be sought on a regular basis. | Being aware that classification of economic agents to institutional sectors is crucial issue for quality of statistics Bank of Estonia, Ministry of Finance and State Statistical Office will continue the harmonization of government sector definition and coverage. The work is based on governmental institutions’ registry established in the beginning of the year 2000. The contract between BOE and MOF about changing information containing in mentioned register was signed in summer 2000. |
| Lower priority | ||
| 4. | For monetary statistics purposes, all short-term securities reported in the sectoral balance sheets of the BOE and ODCs should be valued at market prices or fair values (estimates of market-equivalent values). | For purposes of monetary statistics compilation the recording of all short-term securities at market prices will be introduced in the medium term. |
| 5. | Additional improvements should be made regarding the classification and sectorization of financial derivatives and the inclusion of accrued interest in the outstanding value of financial instruments. | Concerning classification-sectorization of the financial derivatives and inclusion of accrued interest in the outstanding value of financial investments the improvements in the reports will be done. These additions will be implemented in the medium term. |