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Privatization barometer

Privatization barometer | Estonia | Scoop.it
Alexandra Kopiecki's insight:

In 1992, Estonia had enacted the Privatization Act. Estonia's goal with the act was to attract capital from foreign investors. Most of the process was direct sale with bidding and sale of minority shareholdings in important enterprises. It was more of a bipartisan choice. By 1995, 90% of state enterprises had already been privatized.

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Estonian banks earned 79 mln euros in net profit in Q1

Estonian banks earned 79 mln euros in net profit in Q1 | Estonia | Scoop.it
Estonian banks earned 79 million euros in net profit in the first quarter of this year, Estonia's central bank Eesti Pank announced, cites LETA. Normal 0 false false false MicrosoftInternetExplorer4 In the first quarter, 35 more was taken out in housing loans than a year earlier.
Alexandra Kopiecki's insight:

Estonian banks are coming back up and making more money. Profits have been increasing especially because the number of housing loans increasing. This means there is strong growth in real estate prices. Interest rates stayed the same at 2.6% in March. The main reason for the banks' profit is principally because funding costs were low.

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Draghi: Euro-zone recovery could be derailed by higher euro.

Draghi: Euro-zone recovery could be derailed by higher euro. | Estonia | Scoop.it
European Central Bank President Mario Draghi said the institution is open to broad-based purchases of assets if consumer-price growth weakens to the point of threatening the euro zone's fledgling recovery.
Alexandra Kopiecki's insight:

The European Central Bank is going to use broad-based purchases of assets if it needs to. They don't want a higher exchange rate as it could prevent eurozone recovery. Mario Draghi said, "a rise in the exchange rate, all else being equal, implies a tightening of monetary conditions, a downward impact on inflation and potentially a threat to the ongoing recovery." Reducing long term interest rates must also be considered. On Thursday, the euro trade for $1.38 against the U.S. dollar. The ECB is open to joining major central banks of Europe to stimulate the economy, with purchases of assets which is now known as quantitative easing.

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Bank profitability rises, but lending remains depressed

Access the latest economic policy news and analysis for Estonia's economy from The Economist Intelligence Unit
Alexandra Kopiecki's insight:

Estonian banks performance is improving quite well financially. Their profits have gone up thanks to an accounting effect on capital structure organization of one of the larger banks of Estonia. There are also fewer bad loans. Interest payments overdue had decreased from 6.1% in 2010 to 4.5% in 2011. However, overall lending has decreased since the 2009 crisis which came from tighter lending policies and the incentive to reduce debt of households and companies. As of early 2012, lending is greater than it was in the early two months of 2011 which means credit is improving. Now constraints which held Estonia back from economic growth are diminishing.

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Inside the secret digital arms race: Facing the threat of a global cyberwar - Feature - TechRepublic

Inside the secret digital arms race: Facing the threat of a global cyberwar - Feature - TechRepublic | Estonia | Scoop.it
As nations spend billions of dollars stockpiling digital weapons and tension grows between them, the risk of world cyber warfare has suddenly turned offensive.
Alexandra Kopiecki's insight:

In recent years, Estonia had been suffering from thought to be mass coordinated cyber attacks. Attacks had spread to banks, newspaper, and government websites. Unfortunately, Estonia is invested heavily in electronic government services. If the services weaken, they obviously lose economically. Whoever the attackers are, possibly could do major harm to the financial system of Estonia. Naturally, the government and the army have started to invest in cyberwar activity and creating "cyberweapons".

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A Dynamic Economy - estonia.eu

Welcome to Estonia! Estonia.eu contains all information you need — news, informative texts, images, videos etc. — about Estonia.
Alexandra Kopiecki's insight:

The Country Estonia aims to increase welfare and convergence with other countries; a balance between internal and external. Internally, Estonia is using fiscal policy to create budget surplus. Of all Estonian banks, 90% are Scandinavian owned. Estonia is more advanced with smart phone apps and increased technological devices which makes for more deposits via smartphone, etcetera. Estonia is increasing exports and decreasing trade barriers, an external element of convergence with other countries.

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Estonia: state control of broadcaster undermines regulatory independence -

Estonia: state control of broadcaster undermines regulatory independence - | Estonia | Scoop.it
OVUM VIEW Summary The European Commission is a step closer to taking action over the Estonian state’s continued control of the broadcasting and telecommunications provider, Levira. The state should now look to dismiss the controlling share it has held in the company. The adoption of the EC’s 2009 regulatory framework makes this need even more [...]
Alexandra Kopiecki's insight:

The EC (European Commision) is looking to diminish Estonia's state control over broadcasting and telecommunications provider called Levira. Estonia's ministry is also a regulatory body; it is responsible for allocation of resources and broadcasting and telecommunications such as Levira. Many in the EC have privatized the provider long ago. Estonia did implement the framework the EC wanted of them, but by that time it was past the expiration date of the framework. Another problem may be the decision for Estonia's regulator to improve independence of the NRA. Other states are facing similar issues.

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Ministry of Economic Affairs and Communications

Ministry of Economic Affairs and Communications | Estonia | Scoop.it
Ministry of Economic Affairs and Communications
Alexandra Kopiecki's insight:

Estonia is part of the EU common market which makes it subject to the EU common trade policy. It participates in a multilateral trade system and the World Trade Organization since being a member of the EU. Estonia also has bilateral relations with the Ukraine and Russia. Right now Russia is trying to take Crimea and the rest of the Ukraine which would complicate the trade relations between yhem and Estonia. As other trade systems, they have trade defenses to protect against trade violations. Within the external trade policy is the Ministry of Finance which deals with taxation and customs through quantitative and tariff measures. 

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Estonian exceptionalism

Estonian exceptionalism | Estonia | Scoop.it
PLUNGING unemployment, rocketing growth, soaring exports and a budget surplus: that is the story of Estonia as it bounces back from a precipitous economic collapse....
Alexandra Kopiecki's insight:

In an effort to get back the economy Estonia once had before the 2008 crisis, Estonia had swallowed an austerity pill. The reduction in spending is what actually helped Estonia come to the growth rating of an A+. The government used mass cuts in nominal wages and fiscal adjustments (9% in Estonian GDP). Income tax is flat and the government aims to reduce it from 21% to 20% in 2015. Estonia has seen booming exports and great industrial growth. Estonia ranks in the top for best sovereign risks and continues onward with reduced currency risk and an image that makes investors hungry.

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A2 Macro Pre-release: Estonia Uses the Euro, and the Economy is Booming

A2 Macro Pre-release: Estonia Uses the Euro, and the Economy is Booming | Estonia | Scoop.it
Sixteen months after it joined the struggling currency bloc, Estonia is booming. The economy grew 7.6 percent last year, five times the euro-zone average.

Via Saint Martin's - Economics
Alexandra Kopiecki's insight:

Estonia's economy grew 7.6 percent last year. It is now the only euro-zone country with a budget surplus. Austerity is what helped Estonia's economy bounce back after 2008. Its tech-sector is thriving and very vital to the economy. Estonia has very little debt which could be seen further paid off with the budget surplus. Businesses are easy to start up in the country making it easier to get a job and continue further growth in tech-sector.

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