That system will remain in effect until Estonia accedes to the euro zone.
Tallinn, Estonia (PRWEB) April 10, 2009
The International Monetary Fund (IMF) recently recognized Estonia's current economic policy and its actions taken in light of the global financial crisis. At an annual discussion about Estonia's economic situation and outlooks, IMF stressed Estonia's rapid progress in catching up with the average level of the European Union and integration into the European common market. Although Estonia will still be faced with several challenges in the global economic and financial crisis, the country’s vulnerability has considerably declined, the IMF stated. Estonian entrepreneur and owner of KC Grupp, Margus Reinsalu, who does business in Estonia as well as in other countries, agrees with this statement completely.
According to IMF, the price hike has slowed down and the current account deficit is diminishing, which means Estonia depends less on foreign financing.
"Of particular importance in the IMF report is yet another confirmation by IMF that the Estonian currency board system and the fixed exchange rate of the Estonian kroon are the pillars of Estonian financial stability," Central Bank governor Andres Lipstok said. "That system will remain in effect until Estonia accedes to the euro zone."
According to Lipstok, IMF underlined that against the background of the goal of accession to the euro zone it is important to meet the Maastricht budget criterion. IMF recommends aspiration for a surplus of the government sector budget in the medium term.
"The Bank of Estonia has given the same recommendations to the government both earlier and in the last economic comment and it is necessary to bear these aims in mind when drawing up the budget for 2010 and the following years," Lipstok said.
Estonian Minister of Finance, Ivari Padar, stated that cooperation with IMF has been close and Estonia has received much support for its hard decisions from IMF. "I'm convinced that the encouraging evaluation to Estonia's situation calms down also those pessimists who foresee horrible destitution for the whole Baltic region," said Padar. "The success of a country depends first and foremost on the country itself and its decisiveness, not on the amounts of financial aid received or requested."
Margus Reinsalu agrees that the work of the Estonian government and the central bank in sustaining a stable economic and tax environment should be acknowledged. "The government has not been rash in the surrounding global crisis - they have not raised taxes nor done other hasty moves that could alarm Estonians and investors. It is essential to preserve a clear head in a situation of crises, which the Estonian leaders have managed to do, maintaining consensus among people about the main decisions. The recognition of IMF is received thanks to those values."
There was also another positive assessment made by the IMF about Estonia. That time the work of the Estonian Financial Supervisory Authority was acclaimed.
For more information about KC Grupp owner Margus Reinsalu's position on the International Monetary Fund's evaluation of Estonia's economic policy, or for Reinsalu's own position on Estonia and the global financial crisis, visit http://www.kcgrupp.com.
Published by: KC Grupp and Corpore.
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