Rein Otsason
Rein Otsason | |
|---|---|
| Born | Template:Birth date Tartu, Estonia |
| Died | October 30, 2004 (aged 73) |
| Occupation(s) | Banker, economist |
| Known for | First President of the Bank of Estonia, founder and president of Estonian Credit Bank |
Rein Otsason (24 May 1931 – 30 October 2004) was a prominent figure in Estonian banking.
Biography
Otsason was born in Tartu and completed his studies in economics at the Tallinn Polytechnical Institute in 1954. He advanced to become a leading researcher in economics and held the position of Director at the Institute of Economics within the Estonian Academy of Sciences. In 1984, he was awarded a Doctorate in Economics.
Between 1988 and 1989, during Estonia’s early transition away from Soviet governance, Otsason served as the head of the State Plan Committee of the Estonian SSR. On 15 December 1989, the Estonian authorities resolved to create the Bank of Estonia (Eesti Pank). After the enactment of the Bank Law on 28 December 1989, Otsason was appointed as the inaugural President. The Bank of Estonia officially began functioning as an independent issuing bank on 1 January 1990.
Bank of Estonia
During his leadership at the Bank’s inception, Otsason was responsible for establishing essential legal frameworks and preparing for the monetary reform that would reintroduce the Estonian kroon as Estonia’s sovereign currency. Significant achievements under his tenure included ratifying the Bank’s Statutes on 15 March 1990 and setting up regulations for commercial banks by 15 May 1990. By November of that year, transition plans toward adopting the national currency were completed, with active preparations for monetary reform continuing into early 1991.
As part of the Monetary Reform Committee chaired by Prime Minister Edgar Savisaar, Otsason signed an agreement on 10 May 1991 with Thomas De La Rue & Co Ltd. for printing kroon banknotes. Although he played a pivotal role in designing the reform, his inclination to postpone implementation until social consequences could be addressed led to disagreements with government leaders. Consequently, he was succeeded by Siim Kallas on 23 September 1991. The monetary reform was ultimately executed on 20 June 1992.
Both Otsason and Kallas are acknowledged as principal architects behind the Estonian kroon. In recognition of his contributions, Otsason was awarded the Estonian Order of the Coat of Arms, 4th class, by the President in 2003.
Estonian Credit Bank
On 15 March 1992, Otsason established the commercial institution Estonian Credit Bank (Eesti Krediidipank), leading it until his passing. He initially served as Chairman of the Board and from 2000 onward as Chairman of the Council. Alongside his wife Valentina, he maintained a major stake as a principal shareholder. Drawing on his extensive experience and contacts, he guided the bank through turbulent periods such as the 1998 Russian financial crisis, which caused many smaller banks to collapse.
In addition to his presidency, Otsason held a board membership at the Estonian Banking Association (Eesti Pangaliit).
In 2003, he facilitated collaboration with the Bank of Moscow, which acquired an 18.69% shareholding in Estonian Credit Bank through its subsidiary Latvian Business Bank. Following Otsason’s death in 2004, Latvian Business Bank became the majority owner with a controlling interest of 60% by August 2005.
Politics
Otsason was associated with the Union for the Republic - Res Publica party and was elected to the Riigikogu during the 2003 Estonian parliamentary election, but he declined to take his seat in order to continue managing the bank.
Career
- 1980–1984 Served as First Secretary at the Soviet Embassy in Budapest, Hungary
- 1984–1988 Led the Institute of Economics at the Estonian Academy of Sciences as its Director
- 1988–1989 Directed the Estonian State Plan Committee
- 1989–1991 Held the position of President at the Bank of Estonia
- 1992–2004 Acted as President of the Estonian Credit Bank
- 1992–2000 Functioned as Chairman of the Board for the Estonian Credit Bank
- 2000–2004 Served as Chairman of the Council at the Estonian Credit Bank