EBRD and Baltic States deepen partnership to advance Pan-Baltic capital market

The European Bank for Reconstruction and Development (EBRD) is strengthening its cooperation with Estonia, Latvia and Lithuania to further advance the development of a unified pan-Baltic capital market.

Building on their existing cooperation to develop the pan-Baltic capital market, the EBRD will collaborate with the three countries to address remaining barriers and deepen regional financial integration, with the overarching aim of achieving Emerging Market status for the pan-Baltic capital market under the MSCI index classification.

EBRD President Odile Renaud-Basso signed a new Memorandum of Understanding (MoU) outlining key areas of cooperation, with the Ministers of Finance of Estonia, Latvia and Lithuania during the Bank’s 2026 Annual Meeting in Riga.

EBRD President Odile Renaud-Basso said: “The Baltic states have made impressive progress in building a regional capital market based on strong cooperation and shared ambition. This renewed partnership reflects our joint commitment to take the next step in creating a single, deeper and more liquid capital market in the region. A strong pan-Baltic capital market is critical to helping companies across the region to access funding, broaden investment opportunities for both domestic and international investors, and support long-term resilience and growth.”

Since 2017, Estonia, Latvia and Lithuania have worked closely with the EBRD to develop a more integrated capital market, supported by policy dialogue, technical assistance and investment. This cooperation has resulted in the creation of common frameworks, including for covered bonds and commercial paper, and increased market visibility through a single MSCI Frontier Markets classification introduced in 2023. An upgrade to Emerging Market status would help attract greater international investor interest and increase capital flows into the region.

The Bank will prioritise the following key areas, set out in the MOU:

• Mobilising the investor base – both retail and institutional, domestic and foreign
• Incentivising further cross-border activity including by launching new instruments
• Improving access to finance and promoting capital market development and listings to attract new issuers ranging from SMEs to large corporations

The initiative also envisages exploring cross-border investment solutions, including thematic funds in priority sectors such as green energy, technology and infrastructure.

Supporting the development of local capital markets is one of the EBRD’s strategic priorities in the Baltic states.