Estonian Economy and Monetary Policy 1/1999

Monetary Developments & Policy Survey. First Half of 1999

CONTENTS

FOREWORD
I. SURVEY OF THE ESTONIAN ECONOMY
Monetary Developments
Financial Sector
Real Economy and External Sector
Government Sector
Economic Policy Conclusions
II. ESTONIA'S ECONOMIC DEVELOPMENT IN THE FIRST HALF OF 1999
External Environment
Industrial Countries
Emerging Countries
Estonia's Domestic Demand
Private Consumption and Investments
Public Sector
Domestic Saving
Domestic Supply
External Sector
Trends in the Immediate Future
BACKROUND INFORMATION - STRENGTHENING OF INTERNATIONAL FINANCIAL ARCHITECTURE
III. INFLATION
Consumer Prices
Other prices
Competitiveness
IV. MONEY AND CREDIT MARKETS
Capital Flows
Monetary Aggregates
Liquidity, Money Market and Short-Term Interest Rates
Liquidity and Reserve Requirement
Short-Term Interest Rates
Net Open Foreign Exchange Position of Estonia's Credit Institutions
Credit Market
Long-Term Interest Rates
BACKGROUND INFORMATION - INTEREST PAYMENTS FOR RESERVE REQUIREMENT
EURO'S FIRST SIX MONTHS
V. FINANCIAL SECTOR
Banking
Banks' Assets and Their Quality
External Liabilities and Own Funds
Return on Equity
Securities Market
Bond Market
Stock Market
Other Financial Intermediaries
Insurance
Investment Funds
Leasing
Payment System
BACKGROUND INFORMATION - THE PROPOSAL OF THE BASEL COMMITTEE ON BANKING SUPERVISION TO AMEND CAPITAL ADEQUACY REQUIREMENT