Draft Law on Approving Amendments to the Articles of the International Reconstruction and Development Bank (558 SE) - First Reading
Session: 15th Riigikogu, 5th session, plenary session
Date: 2025-01-28 13:11
Participating Politicians:
Total Speeches: 11
Membership: 15
Agenda Duration: 8m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The second agenda item concerned amendments to the Articles of the International Bank for Reconstruction and Development (IBRD) and a review of the draft law 558 for its first reading regarding their approval. The draft aims to modernize the bank’s financial management and to eliminate from the Articles a restriction that established a one-to-one relationship between the total amount of lending and the bank’s capital and reserves, as well as guarantees for issued loans. Removing the restriction does not mean its automatic abolition, but risk management is delegated to the bank’s shareholders' council, and operational management becomes more flexible. It is also emphasized that similar restrictions have been removed from other development banks, and the 2012 amendments increased the voice of poorer countries; IBRD has already implemented a modern risk management framework that broadens the possibilities for capital usage. The draft is a single instance and requires a qualified majority vote from the Riigikogu; further ratification will take place later. With the growth of global development needs, the flexibility of banks’ expectations and the range of financial instruments that can be used also grow.
Decisions Made 1
First reading to be completed; Tanel Kiik to be designated as the representative to the leading committee; the deadline for submitting amendments to be set at 5:15 PM on February 11th.
Most Active Speaker
The speaker, Tanel Kiik (63JvL6tKBQE), is a member of the Riigikogu's finance committee and a representative of the leading committee; he was the most active speaker in this discussion, directing attitudes and representing the committee's stance. Political position: other.
Aseesimees Toomas Kivimägi
AI Summary
The Estonian Parliament proceeds to the second item on the agenda, where the Government-initiated draft law No. 558 on the approval of amendments to the charter of the International Bank for Reconstruction and Development will be considered at its first reading, and the honorable Minister of Finance Jürgen Ligi is asked to present.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi recommends that Parliament approve amendments to the IBRD charter, which update risk management and the use of financial instruments, remove the lending restriction, and increase the voice of developing countries, emphasizing that the amendments will not entail budgetary expenditures for Estonia.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks the audience and asks Rain Epler to pose a question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasizes increasing flexibility as risks rise and asks what the current capital adequacy requirements for Estonian banks are, so as to compare them and reflect on them in the context of the Estonian perspective and an international institution.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that commercial banks are private banks that take deposits and provide loans, but state-owned banks are based on capital contributed by states and do not collect deposits from citizens.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks, closes the questions and asks Finance Committee member Tanel Kiik to present in the lead committee the decisions and emphases.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik provides an overview of the Finance Committee's deliberations on amendments to the International Bank for Reconstruction and Development's charter, where a consensus decision was taken to proceed with the first reading of the draft.
Aseesimees Toomas Kivimägi
AI Summary
The speech begins with thanks, and Rain Epler takes advantage of a second opportunity to ask a question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler thanks the chair and a good colleague, takes the floor to bring himself up to speed and educate himself, and asks how large Estonia's stake is as a percentage and financially in the IBRD, noting that this does not directly pertain to the committee's discussion.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik admits that he does not have readily available exact information about Estonia's share in a bank with 189 member states, but promises to obtain it.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi announced that the first reading of Bill 558 has been completed, and the deadline for submitting amendment proposals is February 11 this year at 17:15.