Estonian businesses have adapted well to the economic crisis and there are now strong prospects for growth, an expert has said.
Hardo Pajula, an analyst at the private banking firm SEB, said that Estonian firms had shown appropriate levels of flexibility by implementing wage cuts of as much as 20 per cent, the Baltic Course reported.
Mr Pajula added that while some companies have lost trust in the banks as a result of the financial crash, access to credit is improving and borrowing is becoming easier.
Referring to Estonia's growth potential, the specialist said that the stock market is improving slowly, noting that investment growth had been at ten per cent in December.
"Euro aspirations have brought down the margin that measures the risk of the Estonian kroon. Also money market interest has been falling. The financial markets are improving," commented Mr Pajula.
Last month, Latvia-based Parex bank announced that its client base in Estonia rose by 35 per cent last year, bringing its total deposits from Estonian clients to 5,300.
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