Today the IMF mission completed their two-week visit of Estonia. The inspection included meetings with the Prime Minister, members of the Government, the Executive Board of Eesti Pank, and executives of the Financial Supervision Authority, as well as with economic analysts and representatives of the private sector.

According to Andres Lipstok, Governor of Eesti Pank, the mission was satisfied with Estonia's progress and commended the authorities for their achievements. The mission also supported the plan to introduce the euro as soon as possible and stressed the great importance of fiscal policy in achieving balanced economic development. The IMF supports the target of balanced budget, but under the current economic circumstances, urges to keep the budget in surplus in order not to accelerate domestic demand, thus avoiding possible price pressures, which might arise therefrom. In addition, the IMF considers signs of overheating in the real estate sector, fast credit growth, and high level of current account deficit as possible risks.

Minister of Finance, Aivar Sõerd said the members of the mission emphasised the significance of medium-term budgeting. Sõerd confirmed the intentions of the government to proceed with the current fiscal policy and maintain at least a balanced general government budget. In order to control costs, the target of the 2006 budgetary negotiations is to keep the government expenditure on the same level as in 2005.

The preliminary conclusions of the mission are available on the home page of Eesti Pank at: www.eestipank.info.

 Further information:
Gerli Polding
Public Relations Bureau of Eesti Pank
Phone: 66 80 719
E-mail: [email protected]

Veiko Valkiainen
Ministry of Finance
Communications Department
Phone: 61 13 094
E-mail: [email protected]