Circular Letter C2.10-0916 — Adoption of the euro by Estonia - Implications for balance of payments statistical declarations

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.bop@bcl.lu Ref.: C2.10-0916 Luxembourg, July 28, 2010 Circular Letter To all credit institutions and to the financial services of the Post and Telecommunications company Subject: Adoption of the euro by Estonia - Implications for balance of payments statistical declarations

Ladies and Gentlemen,

At the European Council meeting in Brussels on June 17, 2010, the Heads of State and Government of the European Union decided that, effective January 1, 2011, Estonia will adopt the single currency, the euro.

The purpose of this circular is to describe the impact of this accession on the preparation of balance of payments records. Indeed, reporters must ensure that Estonia is integrated into the territorial concept constituted by the European Economic and Monetary Union (EMU) and consequently, use operation codes appropriately where a geographic distinction exists between EMU and non-EMU.

1 Direct Investments

Direct investment operations carried out by private sector residents towards Estonia will also be affected by this change. Where applicable, operation codes 430 (capital formation and increase) and 431 (purchase of participation) should be used, and no longer codes 434 and 435 reserved for direct investments made outside the EMU.

2, boulevard Royal L-2983 Luxembourg Fax (+352) 4774-4920 E-mail: reporting.bop@bcl.lu

Regarding operations towards Luxembourg by investors established in Estonia, there will be no change since there is no geographic zone distinction for investments made in this direction.

2 Entry into force

The modifications described above will take effect on January 1, 2011. Operations included in the records transmitted in 2011 but relating to foreign transactions carried out in 2010 must be recorded by applying the EMU geographic definition in force until December 31, 2010.

Please accept, Ladies and Gentlemen, the assurance of our perfect consideration.

CENTRAL BANK OF LUXEMBOURG
Germain Stammet Roland Nockels
Head of Section External Statistics Head of Statistics Department