The State Treasury Department of the Ministry of Finance manages daily cash flows of the state, invests available funds and raises foreign funding for the state if necessary, carries out the settlements for state institutions and organises the granting of loans and state guarantees.
Various state institutions make payouts to private individuals and companies through the State Treasury. All of the fines, fees etc. that are payable to the state by private individuals and companies must be paid to the group bank accounts of the Ministry of Finance.
The State Budget Act sets the rules and principles for managing the State’s cash flow, investing financial reserves, borrowing activities, giving 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 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 or cash pools of the Ministry of Finance. This principle enables the State to carry out consolidated cash flow management (i.e. balancing the positive and negative cash flows of different entities). That reduces both borrowing needs and costs for the State and, in addition, improves overall liquidity and financial risk management.
Contacts for the State Treasury
Front Office - Aive Zirk, +372 611 3864, firstname.lastname@example.org
Back Office - Eve Martinson, +372 611 3819, email@example.com
For more information contact: firstname.lastname@example.org
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);
- Advising State entities and enterprises on their financial risk management issues.
The following graph shows the development of financial reserves (including social security funds’ and State foundations’ cash balances starting from 2010) and outstanding debt obligations of the State Treasury.
Credit Ratings of Estonia
The three credit rating agencies Moody’s, Standard & Poor’s and Fitch have been rating the Republic of Estonia since 1997. The latest long-term local and foreign currency sovereign credit rating assigned to Estonia are:
Standard & Poor’s AA- (outlook stable)
Moody’s A1 (outlook stable)
Fitch A+ (outlook stable)
Graph: The Development of the long-term credit ratings of Estonia since 1997