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Estonia The Bank is organised in the Republic of Estonia and its head office and all of its branches are situated in the Republic of Estonia. In addition, all but one of its subsidiaries are incorporated in the Republic of Estonia. Accordingly, the Bank may be affected generally by governmental policy and other political and economic developments in or affecting the Republic of Estonia. Following the restoration of Estonia's independence in 1991, the Government of Estonia has pursued a radical programme of political and economic reforms, aimed at the introduction of a market-based economy through privatisation of state enterprises and deregulation of the economy. There can be no assurance that such reforms will continue or achieve their intended aims. Moreover, while the Estonian Government's policies have generally resulted in improved economic performance, there can be no assurance that such a level of performance can be sustained or that the political changes in the Estonian Government will not result in a reduction or even reversal of the process of reform in the Republic of Estonia. No assurance can be given that the Government of Estonia will not implement regulations or fiscal or monetary policies, including regulations or policies relating to or affecting taxation, interest rates or exchange controls, or otherwise take actions which could have a material adverse effect on the Bank's business, financial condition, results of operations or prospects which, or which could, adversely effect the market price and liquidity of the Bank's shares. |