[3][4] The Bank of Estonia was restructured under the conditions of the stabilization loan coordinated by the Economic and Financial Organization of the League of Nations.

The main tasks of the bank remained to guarantee the value of the money through currency circulation and through the arrangement and regulation of short-term credit volume.

The Bank of Estonia was re-established on 1 January 1990, following Soviet legislation of November 1989 that granted the Baltic Republics a degree of policy autonomy.

It developed an autonomous capacity for policy expertise, however, and also a commercial business of its own by taking over the Estonian operations of Vnesheconombank which gave it experience in managing foreign assets.

Settlements were still performed through Moscow, however, the local clearing centre being still part of the Soviet State Bank infrastructure.

In April 1992, following a visit by economist Jeffrey Sachs in Tallinn early in that month, the Bank of Estonia decided to implement a currency board arrangement so as to provide monetary stability and to deflect the risk of political interference.

This radical decision allowed the Bank to promptly introduce the country's new currency, the kroon pegged at eight to the Deutsche Mark, on 20 June 1992.

Despite the facts that the three institutions together represented a significant share of Estonia's monetary system, the episode did not take a large toll on the Estonian economy.