Eesti Pank published its new flash report on topical economic issues. This time the focus was on financing the economy and enterprises and analysing the possibilities of state intervention. In Eesti Pank's estimate the lending resources of the banks operating in Estonia are currently sufficient. The issue is to find projects and fields of activity viable from the point of view of economic development. Thus, the primary task of the government is to contribute to favourable economic environment.

When assessing the financing situation of Estonia's banks, it should be noted their capitalisation and liquidity are relatively high. They have all the necessary preconditions for continuing to finance good business projects and support companies in the changed conditions as well. It is important to look beyond the current situation.

The recent years' rapid credit growth in Estonia has markedly increased both households' and corporate debt burden. By end-2008, corporate debt rose above the euro-area average, but it is expected to drop slightly in 2009-2010. This will be an anticipated correction resulting in a drop in the corporate debt burden as a whole and in the volume and loan portfolio share of the loans issued to the real estate sector.

New investments are needed to expand the capital base of enterprises and reorganise their activities. It is important for the share of direct investment to increase in financing the economy and enterprises both in 2009 and next years. The primary task of the government is to maintain the country's open investment climate facilitating foreign investment inflow and the expansion of the circle of owners of Estonia's enterprises.

The flash estimate is available on the web site of Eesti Pank.