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The Bank The Bank in its present form has been operating for a relatively short period of time and while it is in the course of developing monitoring, credit and other procedures and safeguards, there can be no assurance as to the effectiveness of such procedures and safeguards. The Bank has had limited experience to date in relation to the writing-off of loans and realisation of collateral. While the Bank currently provides for potential loan losses in accordance with regulations issued by the Bank of Estonia and pursuant to International Accounting Standards, its provisioning is based on estimated potential losses, taking into the account the Bank's estimate of the realisation values of collateral, which values may be based on factors other than historical experience. |