EESTI ÜHISPANK           

ANNOUNCMENT    

10.11.1998

 

COMMENTARY TO THE ARTICLE 'GRAND FRAUD' IN ÄRIPÄEV

 

Eesti Ühispank  confirms that  the bank   has not  once tried  to hide

the  financial  losses  of  the   bank  from  the  auditors.  As   the

transaction has not taken place,  neither party has got loss  from the

transaction.

 

The  business  character  of  the   transactions  is  verified  by the

matter that the capacity of the  transactions was different. From  one

side  a  transaction  with  the  capacity  of 143.7 million kroons was

concluded and from the other  side the  transaction with  the capacity

of  181 million kroons. Both of the transactions were terminated.

 

The shares  that were  the basis  for the  stock deals, were reflected

by  Ühispank  in   the  current   market   prices  according  to   the

international standards of  accounting, their realisation  was started

in November last year and  was  ended in the   spring of the   current

year. There  was no hiding of loss.

 

Janek Mäggi

Vice President

Phone +372 6 104 300