IMF Staff Country Reports

Republic of Estonia: Staff Report for the 2009 Article IV Consultation

Publication Date:

January 8, 2010

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This 2009 Article IV Consultation highlights that the credit-fueled boom has resulted in a relatively large nonfinancial private sector debt stock in Estonia. With declining incomes, unemployment increasing sharply, and asset prices depressed, balance sheets of households and firms are under strain, weighing on domestic demand. Nonperforming loans have increased to more than 6 percent of total, and some banks are reporting losses. Executive Directors have supported the authorities’ aim toward speedy adoption of the euro, noting its effects in fostering stability and confidence.

Series:

Country Report No. 2010/004

Subject:

Banking External debt Financial derivatives Financial institutions Fiscal policy Fiscal stance Income National accounts Public debt