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EBRD launches new strategy for Estonia
The EBRD has adopted a new
country strategy for Estonia which focuses on energy efficiency and a
drive to widen further the scope of the country’s already advanced economic
development.
In its assessment, the EBRD states that Estonia has made significant progress
in the transition to a modern market economy and the country is now one of the
most open and competitive economies in the world. The economy grew by 9.8 per
cent during 2005 and the fiscal position remained strong.
A few challenges remain, however, which the EBRD is ready to tackle in order
to further increase the competitiveness of the Estonian economy:
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Energy efficiency is not yet fully compliant with EU energy regulations and
renewable energy in particular needs further regulatory strengthening;
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In general industry, the further stimulation of enterprise development in
poorer regions remains a key challenge. Small and medium-sized enterprises
need a broader range of financial instruments to develop dynamically.
In accordance with this analysis, the EBRD’s activities in Estonia will be
based on the following objectives:
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Support for the development of renewable energy projects;
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Support for the expansion of local companies, particularly in cross-border
projects by providing long term risk capital;
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Promotion of SME and municipal financing and energy efficiency; and
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Support for complex transactions across sectors, including public private
partnerships, which would benefit from the Bank’s expertise in project
structuring and mobilisation of co-financing.
To date, the EBRD has signed 48 direct and 24 regional projects for Estonia
with a total investment of €1.18 billion, of which the Bank provided €470
million, or 40 per cent.
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