Estonia, Swedbank sign 50-million-euro loan dealRecession-hit Estonia has signed a 50-million-euro loan deal with Swedish-based Swedbank, a key player in the Baltic state's financial market, the government said Wednesday.
"Estonia will borrow 782 million kroons (50 million euros, 69 million dollars) from Swedbank," finance ministry spokeswoman Piret Seeman told AFP (1) (AppleTalk Filing Protocol) The file sharing protocol used in an AppleTalk network. In order for non-Apple networks to access data in an AppleShare server, their protocols must translate into the AFP language. See file sharing protocol. .
Finance Minister Ivari Padar Ivari Padar (born 12 March 1965 in Navi, Võrumaa) is an Estonian politician, the current Minister of Finance and the chairman of the Estonian Social Democratic Party. said in a statement that one of the aims of the deal was to increase the liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. of the state, which is trying to tackle a deep economic slump.
Estonia regained independence from the crumbling Soviet bloc in 1991 and later earned a reputation as a "tiger" in the European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the
European Community , which it joined in 2004.
But after years of stellar growth it plunged into recession last year as rampant inflation dented consumption and the global economic crisis battered bat·ter 1
v. bat·tered, bat·ter·ing, bat·ters
1. To hit heavily and repeatedly with violent blows.
2. To subject to repeated beatings or physical abuse.
3. exports of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. .
The economy in the country of 1.3 million people contracted by 3.6 percent last year and Estonian authorities forecast it could shrink by 15.3 percent this year.
Estonia earned a reputation for prudence, putting funds aside when the economy was growing, and has been reluctant to use up its nest-egg to bridge a budget gap.
"The reserves Estonia collected in the boom years have been partly the guarantee of the current credibility of Estonia, so using a loan we get on good terms in order to keep some money in the reserve fund is a very reasonable choice," Padar said.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the agreement, Swedbank will transfer the funds to the Estonian treasury at the beginning of June.
"The government gave the finance ministry the right to borrow 2.3 billion kroons during 2009. In light of the ongoing budget planning decisions and budget-cut talks, it is reasonable to borrow a smaller sum," Padar said.
The Estonian government has already slashed spending in the face of the crisis and is currently wrangling over further cuts, with the arguments raising the spectre of a collapse of the country's three-party coalition.