burden. Upon the Soviet invasion of 1940, Eesti Pank was nationalized as "the Estonian Republican Office of the State Bank of the Soviet Union". With the nationalization and the introduction of the Russian ruble as legal tender, it lost much of its functions. 1990: Reestablishment Eesti Pank recommenced operations on 1 January 1990 after an interval of 50 years, though not yet as the central bank of an independent country. The fact that it was possible to restore the central bank in spite of the fact that Estonia was not yet independent was a paradox of that time. The Statutes of Eesti Pank were confirmed in March 1990, and 400 million rubles were allocated for the statutory fund. According to the Statutes, Eesti Pank was an independent public organisation, an issue centre subordinate to the highest authority of the Estonian SSR. The main tasks of the bank included the following: developing an economic strategy for the country and its execution in the field of currency circulation the provision of credit, financing, settlements, and foreign currency relations management of the currency and credit system securing the stability of currency circulation; guaranteeing the purchasing power of the national currency and determining its exchange rate in relation to other currencies. Foreign Trade Bank take-over Eesti Pank took over the Tallinn branch of the Foreign Trade Bank of the Soviet Union, re-organising it into the Foreign Currency Operations Centre of Eesti Pank. The central bank also attempted to take other steps within its ability for the liberalisation of the economy and in order to make the transition to a market economy: it began organising currency auctions, publishing quotations of the number of rubles in circulation, issuing licenses for foreign payments and settlements, etc. Introduction of regulatory function At the same time it was necessary to begin transforming Eesti Pank into an actual regulator of the Estonian banking sector. At that time, settlements were performed through Moscow, the local Clearing Centre being subordinate to Moscow. In the first years, Eesti Pank was not yet able to regulate and inspect the operations of the local commercial banks. Reserves The formation of reserves backing the kroon was commenced. After the recognition of Eesti Pank as the legal successor of the central bank of the Republic of Estonia, established in 1919 during the independence period, the government of Great Britain decided to return the gold that had belonged