The State Treasury is a department of the Ministry of Finance of Estonia. It started its activities on the 1st of April 1996.
The State Budget Act sets the rules and principles for managing the State’s cash flows, investing financial reserves, borrowing activities, granting loans and guarantees and for the execution of payments.
By law, State entities (ministries, agencies etc.), social security funds such as the Estonian Health Insurance Fund and the Estonian Unemployment Insurance Fund, and State-owned foundations have to keep their cash at the Ministry of Finance, and collect their revenue and make payments through the bank accounts of the Ministry of Finance. This enables the State to carry out consolidated cash flow management (i.e. balancing the positive and negative cash flows of different entities), so reducing borrowing needs and interest costs for the State, while improving liquidity and enhancing financial risk management.
The State Treasury is responsible for
Cash flow and financial reserves management
Borrowing and debt management
On-lending and guarantees management
Financial risk management
Payments and other banking services (e.g. credit cards, POS terminals)