VILNIUS — Estonia’s accession to the eurozone at the start of 2011 will boost financing options to the country, giving it a viable exit to the crisis, a Danske Bank analyst said at the Baltic Development Forum on Tuesday. However, other analysts aren’t so sure.

Estonia is suffering from similar economic problems as Latvia and Lithuania, one of which is a dearth of financing from [private_supervisor]banks. The country has been told by the European Commission that it will join the eurozone by Jan. 1, 2011, a goal that the country has been aiming for for several years.

“A stable economic outlook and structural reform will push growth to a significantly higher level. The Baltic states are not homogeneous and only Estonia has solved their fiscal problems. The euro will restore the confidence and capital inflow into Estonia,” Violeta Klyvienė, Danske Bank’s pan-Baltic financial analyst said at a corporate finance discussion at the Baltic Development Forum in Vilnius.

Though it won’t be a panacea, it will alleviate many problems facing Estonia at the moment.

“It’s very important to get the euro. Getting the euro is an accepted exit to the current situation,” she said.

Estonia getting the euro will push the other Baltic states to become more responsible, she believes.

“Estonian euro membership will be positive for the whole region. It will push the other governments to be more fiscally responsible and achieve euro faster,” Klyvienė said.

Eva Srejber, vice president of the European Investment Bank said that the euro will increase confidence, but that access to credit will be tight from now on.

“We will see less capital in the world for three reasons: many banks have overextended themselves and they need to shrink the balance sheets and deal with bad loans. This takes time. Tightening of regulations, we all know there will be more stringent requirements for capital and liquidity and governments have increasing debt with high deficits that need to be financed. We are coming out of the slump at different paces and there have been different effects for bailing out banks. This will lead to crowding-out effects,“ Srejber said.

Hakan Berg, head of Swedbank’s Baltic Banking, said during the panel discussion that the crisis has weeded out many businesses that should never have been financed.

“Its important to conclude that the banks do want to lend, it’s part of the business, there are lots of stable clients and any good ideas will be financed. But a lot of ideas from the boom were not sustainable and the crisis is taking care of that,” Berg said. [/private_supervisor] [private_subscription 1 month]banks. The country has been told by the European Commission that it will join the eurozone by Jan. 1, 2011, a goal that the country has been aiming for for several years.

“A stable economic outlook and structural reform will push growth to a significantly higher level. The Baltic states are not homogeneous and only Estonia has solved their fiscal problems. The euro will restore the confidence and capital inflow into Estonia,” Violeta Klyvienė, Danske Bank’s pan-Baltic financial analyst said at a corporate finance discussion at the Baltic Development Forum in Vilnius.

Though it won’t be a panacea, it will alleviate many problems facing Estonia at the moment.

“It’s very important to get the euro. Getting the euro is an accepted exit to the current situation,” she said.

Estonia getting the euro will push the other Baltic states to become more responsible, she believes.

“Estonian euro membership will be positive for the whole region. It will push the other governments to be more fiscally responsible and achieve euro faster,” Klyvienė said.

Eva Srejber, vice president of the European Investment Bank said that the euro will increase confidence, but that access to credit will be tight from now on.

“We will see less capital in the world for three reasons: many banks have overextended themselves and they need to shrink the balance sheets and deal with bad loans. This takes time. Tightening of regulations, we all know there will be more stringent requirements for capital and liquidity and governments have increasing debt with high deficits that need to be financed. We are coming out of the slump at different paces and there have been different effects for bailing out banks. This will lead to crowding-out effects,“ Srejber said.

Hakan Berg, head of Swedbank’s Baltic Banking, said during the panel discussion that the crisis has weeded out many businesses that should never have been financed.

“Its important to conclude that the banks do want to lend, it’s part of the business, there are lots of stable clients and any good ideas will be financed. But a lot of ideas from the boom were not sustainable and the crisis is taking care of that,” Berg said. [/private_subscription 1 month] [private_subscription 4 months]banks. The country has been told by the European Commission that it will join the eurozone by Jan. 1, 2011, a goal that the country has been aiming for for several years.

“A stable economic outlook and structural reform will push growth to a significantly higher level. The Baltic states are not homogeneous and only Estonia has solved their fiscal problems. The euro will restore the confidence and capital inflow into Estonia,” Violeta Klyvienė, Danske Bank’s pan-Baltic financial analyst said at a corporate finance discussion at the Baltic Development Forum in Vilnius.

Though it won’t be a panacea, it will alleviate many problems facing Estonia at the moment.

“It’s very important to get the euro. Getting the euro is an accepted exit to the current situation,” she said.

Estonia getting the euro will push the other Baltic states to become more responsible, she believes.

“Estonian euro membership will be positive for the whole region. It will push the other governments to be more fiscally responsible and achieve euro faster,” Klyvienė said.

Eva Srejber, vice president of the European Investment Bank said that the euro will increase confidence, but that access to credit will be tight from now on.

“We will see less capital in the world for three reasons: many banks have overextended themselves and they need to shrink the balance sheets and deal with bad loans. This takes time. Tightening of regulations, we all know there will be more stringent requirements for capital and liquidity and governments have increasing debt with high deficits that need to be financed. We are coming out of the slump at different paces and there have been different effects for bailing out banks. This will lead to crowding-out effects,“ Srejber said.

Hakan Berg, head of Swedbank’s Baltic Banking, said during the panel discussion that the crisis has weeded out many businesses that should never have been financed.

“Its important to conclude that the banks do want to lend, it’s part of the business, there are lots of stable clients and any good ideas will be financed. But a lot of ideas from the boom were not sustainable and the crisis is taking care of that,” Berg said. [/private_subscription 4 months] [private_subscription 1 year]banks. The country has been told by the European Commission that it will join the eurozone by Jan. 1, 2011, a goal that the country has been aiming for for several years.

“A stable economic outlook and structural reform will push growth to a significantly higher level. The Baltic states are not homogeneous and only Estonia has solved their fiscal problems. The euro will restore the confidence and capital inflow into Estonia,” Violeta Klyvienė, Danske Bank’s pan-Baltic financial analyst said at a corporate finance discussion at the Baltic Development Forum in Vilnius.

Though it won’t be a panacea, it will alleviate many problems facing Estonia at the moment.

“It’s very important to get the euro. Getting the euro is an accepted exit to the current situation,” she said.

Estonia getting the euro will push the other Baltic states to become more responsible, she believes.

“Estonian euro membership will be positive for the whole region. It will push the other governments to be more fiscally responsible and achieve euro faster,” Klyvienė said.

Eva Srejber, vice president of the European Investment Bank said that the euro will increase confidence, but that access to credit will be tight from now on.

“We will see less capital in the world for three reasons: many banks have overextended themselves and they need to shrink the balance sheets and deal with bad loans. This takes time. Tightening of regulations, we all know there will be more stringent requirements for capital and liquidity and governments have increasing debt with high deficits that need to be financed. We are coming out of the slump at different paces and there have been different effects for bailing out banks. This will lead to crowding-out effects,“ Srejber said.

Hakan Berg, head of Swedbank’s Baltic Banking, said during the panel discussion that the crisis has weeded out many businesses that should never have been financed.

“Its important to conclude that the banks do want to lend, it’s part of the business, there are lots of stable clients and any good ideas will be financed. But a lot of ideas from the boom were not sustainable and the crisis is taking care of that,” Berg said. [/private_subscription 1 year]

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