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Estonia

Author(s):
International Monetary Fund
Published Date:
August 2000
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Estonia: Basic Data
Social and demographic indicators, 1999
Area45,227sq. km.
Population1.4429million
Rate of population growth-0.6percent per year
Life expectancy at birth 1/69.9years
Male64.4years
Female75.4years
Infant mortality rate (per 1,000 births) 1/9.3
Hospital beds (per 10,000 inhabitants) 1/72.5
Physicians (per 10,000 inhabitants) 1/30.8
19951996199719981999
Nominal GDP (in million of EEK)40,70552,44664,32473,32575,360
GDP per capita (in US$)2,4552,9663,1803,5933,553
Real GDP (percentage change)4.33.910.64.7-1.1
Sectoral distribution of GDP
(In percent of GDP)
Agriculture, hunting, forestry, and fishing7.97.56.96.35.7
Mining, manufacturing, and energy23.122.221.521219.9
Construction and services69.070.371.772.574.4
Trade
(In millions of kroons, unless otherwise specified)
Total exports of goods19,42821,83331,87137,78636,036
(in percent of GDP)47.741.649.551.547.8
Total imports of goods29,23037,63747,52653,50548,975
(in percent of GDP)71.871.873.973.065.0
General government
Total revenue16,46720,43125,48528,88729,083
(in percent of GDP)40.539.039.639.438.6
Total expenditure16,83321,20024,33929,03732,542
(in percent of GDP)41.440.437.839.643.2
Net lending-146-41264-77-81
(in percent of GDP)-0.4-0.10.4-0.1-0.1
Overall surplus / deficit (-)-512-8111,410-227-3540
(in percent of GDP)-1.3-1.52.2-0.3-4.7
Money and credit (end-period)
Net foreign assets7,6297,1595,0915,1147,850
Broad money (M3)10,34414,15419,50920,79825,918
Domestic credit5,20010,43419,18423,62226,050
Claims on general government (net)-1,820-1,501-2,762-1,469-668
Other selected indicators
(Annual percentage change)
GDP at current prices37.528.822.614.02.8
Consumer prices29.023.011.28.13.3
Average nominal wage (in EEK)37.025.719.715.47.1
Sources: Estonian authorities; and Fund staff estimates.

Data for 1998

Sources: Estonian authorities; and Fund staff estimates.

Data for 1998

Table 1.Estonia: Gross Domestic Product by Expenditure, 1993-1999
1993199419951996199719981999
(In millions of kroons, current prices)
Consumption17,18525,03834,30944,47752,21059,64061,942
Private consumption12,59118,09023,75231,49237,58643,17443,603
General government consumption4,4746,79010,35012,63214,21915,99717,828
Non-profit institutions consumption120157207353404469511
Investment5,8218,18410,88114,57919,84521,57218,486
Gross fixed capital formation5,2808,00410,57614,01517,96221,76118,894
Changes in inventories5411813055641,882-189-408
Domestic demand23,00633,22245,19059,05672,05481,21280,428
Total exports (fob)15,19722,48629,45135,18650,23858,59057,944
Exports of goods (fob)10,76315,82919,42821,83331,87137,78636,036
Exports of services (fob)4,4346,65710,02313,35318,36720,80421,908
Total imports (fob)16,12525,73932,73641,22957,66166,26062,240
Imports of goods (fob)12,68820,44427,04434,12247,52653,50548,975
Imports of services (fob)3,4375,2945,6937,10810,13512,75513,265
Statistical Discrepancy-469-369-1,200-567-308-217-772
GDP21,61029,60040,70552,44664,32473,32575,360
(In millions of kroons, constant 1995 prices)
Consumption31,07431,45134,30936,21538,64140,78740,965
Private consumption22,34722,54823,75225,66327,95129,66728,979
General government consumption8,5228,70910,35010,26510,39410,80311,651
Non-profit institutions consumption205195207287296317335
Investment10,34310,38210,88112,24515,79615,26012,760
Gross fixed capital formation9,56910,16610,57611,77713,83615,40413,066
Changes in inventories7742163054681,960-143-306
Domestic demand41,41741,83345,19048,46054,43756,04753,725
Total exports (fob)26,88727,91429,45130,09939,24444,15943,108
Exports of goods (fob)17,22118,23819,42819,60126,60430,92229,361
Exports of services (fob)9,6669,67610,02310,49812,64113,23613,748
Total imports (fob)27,60131,05332,73635,19045,67651,39148,108
Imports of goods (fob)22,28525,54827,04428,91738,68342,75839,282
Imports of services (fob)5,3175,5055,6936,2736,9938,6338,826
Statistical Discrepancy00000181-257
GDP40,70338,69441,90543,36948,00548,99648,469
Source: National authorities.
Source: National authorities.
Table 2.Estonia: Gross Domestic Product by Origin, 1993-1999
1993199419951996199719981999
(In millions of kroons, current prices)
Agriculture and hunting1,8442,1802,2282,7232,7802,8102,463
Forestry2173364756108411,0621,206
Fishing118154173203278283199
Mining and quarrying367478601728830796801
Manufacturing3,7705,0226,3857,7849,38610,78910,359
Electricity, gas and water supply7148711,4421,8991,9842,4112,422
Construction1,3011,6842,1612,7353,3144,2343,681
Services11,46915,71023,02830,37737,44543,53247,175
Wholesale and retail trade3,3594,0786,0168,0359,73710,89010,907
Hotels and restaurants273311419589676779906
Transport, storage and communications2,4563,0603,8315,0706,9289,1239,916
Real estate, renting and business activities1,4572,2113,4744,4955,5607,3078,325
Financial intermediation5608481,3212,2272,7982,5632,842
Public administration6811,1941,7742,1852,5972,9003,384
Education1,1241,5102,2122,6113,0823,5844,014
Health and social work5079471,4851,9552,1872,3682,602
Other services1,0521,5522,4963,1123,8794,0184,279
Total value added19,79926,43436,49346,95956,85865,91868,308
FISIM 1/4506237871,1311,1719991,169
GDP at basic prices19,34925,81035,70645,82855,68764,91967,139
Net taxes on product2,2613,7894,9996,6188,6378,4078,222
GDP at market prices21,61029,60040,70552,44664,32473,32575,360
(percent of GDP)
Agriculture and hunting8.57.45.55.24.33.83.3
Forestry1.01.11.21.21.31.41.6
Fishing0.50.50.40.40.40.40.3
Mining and quarrying1.71.61.51.41.31.11.1
Manufacturing17.417.015.714.814.614.713.7
Electricity, gas and water supply3.32.93.53.63.13.33.2
Construction6.05.75.35.25.25.84.9
Services53.153.156.657.758.259.462.6
Wholesale and retail trade15.513.814.815.315.114.914.5
Hotels and restaurants1.31.11.01.11.11.11.2
Transport, storage and communications11.410.39.49.710.812.413.2
Real estate, renting and business activities6.77.58.58.68.610.011.0
Financial intermediation2.62.93.24.24.43.53.8
Public administration3.24.04.44.24.04.04.5
Education5.25.15.45.04.84.95.3
Health and social work2.33.23.63.73.43.23.5
Other services4.95.26.15.96.05.55.7
Total value added91.689.389.789.588.489.990.6
FISIM 1/2.12.11.92.21.81.41.6
GDP at basic prices89.587.287.787.486.688.589.1
Net taxes on product10.512.812.312.613.411.510.9
GDP at market prices100.0100.0100.0100.0100.0100.0100.0
Source: National authorities.

Financial intermediation services indirectly measured.

Source: National authorities.

Financial intermediation services indirectly measured.

Table 3.Estonia: Real Gross Domestic Product by Origin, 1993-1999
1993199419951996199719981999
(In millions of kroons, constant 1995 prices)
Agriculture and hunting2,6062,2902,2282,0802,0251,9301,822
Forestry323373475534666743831
Fishing151156173200260254234
Mining and quarrying687645601646733681637
Manufacturing6,0105,8096,3856,5607,7468,2478,028
Electricity, gas and water supply1,4741,4921,4421,4751,4431,3281,222
Construction2,0031,8912,1612,3742,7473,3372,810
Services22,46222,43823,02824,16926,10827,37228,071
Wholesale and retail trade5,2735,3196,0166,5706,8347,2077,241
Hotels and restaurants459460419465508574590
Transport, storage and communications3,9733,9953,8314,1114,8965,3875,664
Real estate, renting and business activities3,7383,5493,4743,4983,9854,5964,818
Financial intermediation1,2331,3021,3211,4281,5421,3111,428
Public administration1,7361,7541,7741,7761,8721,8831,895
Education2,1222,1442,2122,2462,2632,2942,280
Health and social work1,4861,4911,4851,4601,5151,5691,597
Other services2,4432,4242,4962,6142,6952,5502,559
Total value added35,71535,09436,49338,03741,72743,89243,655
FISIM 1/727775787850918790899
GDP at basic prices34,98734,31935,70637,18740,80943,10142,756
Net taxes on product4,8404,7124,9995,1105,9805,8945,713
GDP at market prices39,82739,03140,70542,29746,78948,99648,469
(year-on-year growth rates in percent)
Agriculture and hunting-12.1-2.7-6.6-2.6-4.7-5.6
Forestry15.327.512.424.811.611.8
Fishing3.710.915.329.9-2.1-8.1
Mining and quarrying-6.0-6.87.413.4-7.1-6.5
Manufacturing-3.39.92.718.16.5-2.6
Electricity, gas and water supply1.2-3.42.3-2.2-8.0-8.0
Construction-5.614.39.915.721.5-15.8
Services-0.12.65.08.04.82.6
Wholesale and retail trade0.913.19.24.05.50.5
Hotels and restaurants0.1-8.911.19213.02.8
Transport, storage and communications0.6-4.17.319.110.05.1
Real estate, renting and business activities-5.1-2.10.713.915.44.8
Financial intermediation5.61.58.08.0-15.08.9
Public administration1.11.10.15.40.60.6
Education1.03.21.50.81.4-0.6
Health and social work0.4-0.4-1.73.73.61.8
Other services-0.83.04.83.1-5.40.4
Total value added-1.74.04.29.75.2-0.5
FISIM 1/6.61.58.18.0-13.913.7
GDP at basic prices-1.94.04.19.75.6-0.8
Net taxes on product-2.66.12.217.0-1.4-3.1
GDP at market prices-2.04.33.910.64.7-1.1
Source: National authorities.

Financial intermediation services indirectly measured.

Source: National authorities.

Financial intermediation services indirectly measured.

Table 4.Estonia: Gross Domestic Product by Income Approach, 1993-1999
1993199419951996199719981999
(In millions of kroons, current prices)
Compensation of employees11,38416,96823,14627,91033,39237,20438,210
Wages and salaries8,62412,79017,52221,16925,39728,22129,019
Employer’s social contributions2,7604,1785,6246,7417,9958,9839,191
Consumption of fixed capital2,6993,3344,5275,6517,42810,03111,447
Taxes on production and imports3,0264,5595,8917,7259,9609,9909,806
Subsidies216287311391458805892
Operating surplus and mixed income 1/4,7165,0267,45211,55114,00116,90516,788
GDP at market prices21,61029,60040,70552,44664,32473,32575,360
Source: National authorities.

Does not include financial intermediation services indirectly measured.

Source: National authorities.

Does not include financial intermediation services indirectly measured.

Table 5.Estonia: Prices, 1994-2000
Consumer price indexProducer Price IndexExport price index
OverallGoodsServicesNonregulated goods and servicesRegulated goods and services
(Percent change)
1994
Period average47.733.989.243.1100.236.2
Dec.-on-Dec.41.723.885.240.495.632.822.2
1995
Period average29.017.845.226.457.225.615.2
Dec.-on-Dec.28.920.440.228.346.921.817.2
1996
Period average23.119.627.127.431.414.811.4
Dec-on-Dec.14.812.816.826.421.19.95.6
1997
Period average11.284.014.321.418.98.87.6
Dec-on-Dec.12.510.615.111.114.87.74.9
1998
Period average8.16.212.76.413.44.22.1
Dec.-on-Dec.4.22.47.93.07.60.1-0.8
1999
Period average3.30.39.70.810.1-1.2-0.4
Dec.-on-Dec.3.81.88.21.510.12.27.1
(Percent change on previous month)
1998
January0.80.70.70.70.71.91.2
February0.90.91.00.81.60.31.2
March0.80.71.20.71.0-0.1-0.2
April0.50.50.30.50.40.20.2
May0.40.30.60.20.8-0.3-1.8
June0.20.10.30.30.00.31.3
July0.60.21.30.31.40.20.8
August-0.2-0.20.0-0.20.0-0.20.0
September0.0-0.61.1-0.1-0.1-0.6-0.8
October0.2-0.10.70.10.5-0.3-0.7
November-0.1-0.20.3-0.20.3-1.0-1.3
December0.20.10.2-0.10.7-0.3-0.6
1999
January1.10.33.00.33.5-0.1-0.3
February0.3-0.21.10.00.9-0.10.4
March0.50.11.30.21.20.00.2
April0.20.20.20.10.60.0-0.2
May0.40.01.10.01.1-0.1-0.4
June0.0-0.10.1-0.10.20.21.0
July0.0-0.20.40.00.20.20.2
August-0.2-0.30.2-0.50.60.20.5
September0.20.00.40.10.20.30.4
October0.30.6-0.50.6-0.60.63.3
November0.30.40.20.40.20.40.8
December0.81.00.40.51.70.51.0
2000
January0.50.21.10.31.20.82.1
February0.10.20.4-0.20.60.50.7
March0.60.60.90.41.30.30.1
April0.20.10.10.10.10.4-3.0
Source: National authorities.
Source: National authorities.
Table 6.Estonia: Average Monthly Wage, 1992-2000
Nominal wage in

kroons
Real wage

(1992=100) 1/
Nominal wage in

US dollars
1992 2/54510059
1993 2/1,08510382
1994 2/1,743112135
1995 2/2,385119209
1996 2/2,986121248
1997 2/3,571130257
1998 2/4,096138292
1999 2/4,416145301
1998
January3,669127253
February3,688127254
March3,875132265
April4,026137277
May4,191142295
June 3/4,539153317
July4,176140290
August3,850129269
September4,013135294
October4,185140319
November4,112138306
December 3/4,822162361
1999
January3,906129290
February4,012133288
March4,282141298
April4,301141294
May4,481147304
June 3/4,862159323
July4,285140283
August4,093134277
September4,392144295
October4,412144302
November4,593149304
December 3/5,375173348
2000
January4,414142286
February4,488144282
March4,598147284
Source: National authorities.

Nominal wage deflated by CPI.

Annual average calculated as the arithmetic mean of monthly average wages.

Includes mid-year and end-year bonus payments.

Source: National authorities.

Nominal wage deflated by CPI.

Annual average calculated as the arithmetic mean of monthly average wages.

Includes mid-year and end-year bonus payments.

Table 7.Estonia: Average Monthly Wage by Sector, 1993-1999
1993199419951996199719981999 2/
(In kroons)
Total 1/1,0661,7342,3752,9853,5734,1254,418
Agriculture, hunting6411,0101,4051,8112,1312,5352,368
Forestry9081,6012,4192,5903,6574,0594,098
Fishing1,2291,7051,9872,7083,6403,6743,376
Mining and quarrying1,4872,3622,9683,9444,4124,8945,162
Manufacturing1,0361,7842,4212,9913,5784,0814,067
Electricity, gas and water supply1,4672,4323,2623,8724,8355,5615,689
Construction1,2642,0472,5683,1953,7094,1963,850
Services1,1741,8262,5373,2153,8514,4724,975
Wholesale and retail trade9171,5102,0512,7203,1123,6274,299
Hotels and restaurants7861,1961,5702,1282,3402,6242,229
Transport, storage and communications1,7412,4213,1013,7484,4255,1225,489
Financial intermediation2,4963,5714,9516,1097,6848,91410,046
Real estate, renting and business activities1,0311,7482,5623,2134,0784,5665,104
Public administration1,1032,0302,8253,5464,2264,9425,716
Education8501,2591,9002,3262,7943,3703,959
Health and social work8181,4021,9752,6893,0893,6904,172
Other services8251,3001,8942,4532,9133,3903,763
Source: National authorities; and Fund staff projections.

Total average monthly wage calculated by aggregating across sectors.

Estimate based on quarterly data.

Source: National authorities; and Fund staff projections.

Total average monthly wage calculated by aggregating across sectors.

Estimate based on quarterly data.

Table 8.Estonia: Employment by Sector, 1993-1999(thousands, period average, persons aged 15 to 65)
1993199419951996199719981999 HI
Total708.1692.6656.1645.6644.1636.2610.5
Agriculture, hunting and forestry101.587.563.059.753.352.650.0
Agriculture and hunting91.975.955.552.144.543.1
Forestry9.611.67.57.68.89.4
Fishing16.113.56.05.07.25.23.1
Mining and quarrying11.211.29.18.97.68.28.7
Manufacturing151.5143.2162.9154.4143.6139.1129.4
Electricity, gas and water supply18.319.515.816.417.618.118.1
Construction52.449.935.636.847.446.940.3
Services357.1367.9363.7364.6367.4366.1360.7
Wholesale and retail trade81.088.182.785.890.490.388.2
Hotels and restaurants17.018.718.017.814.614.413.1
Transport, storage and communication58.958.265.864.759.157.954.8
Transport49.248.054.152.347.747.1
Post and telecommunications9.610.211.812.311.310.8
Financial intermediation6.67.97.16.67.58.69.0
Real estate, renting and business activities27.729.932.232.334.638.339.6
Public administration34.936.435.735.034.036.638.6
Education49.748.255.856.357.955.554.0
Health and social work47.347.036.535.936.234.634.7
Other services34.033.429.930.233.230.028.8
Source: National authorities; and Fund staff estimates.
Source: National authorities; and Fund staff estimates.
Table 9.Estonia: Labor Market Indicators, 1993-2000 1/
19931994199519961997199819992000
Q1Q2Q3Q4YearQ1Q2Q3Q4YearQ1
(in thousands)
Working age population 2/1,0791,0691,0621,0541,1041,1031,1031,1031,1021,1031,1021,102
Labor force758749727718718716711709705711699695
Employed708693656646648643643641634640615615
Unemployed505771726972686872708481
of which registered unemployed 3/1413151616161316152224
Inactive322320335336386387392394397392403407
(in percent)
Unemployment rate (percent)6.67.69.710.09.710.19.69.610.29.912.011.714.8
Registered unemployed rate (percent) 3/1.91.82.12.32.32.21.92.32.23.13.43.23.23.23.3
Source: National authorities; and Fund staff estimates.

Labor market indicators are compiled only on a quarterly basis. Data are taken from the Estonian Labor Force Survey conducted in the third quarter of each year. Data on registered unemployment ar- taken from the Labor Market Board.

From 1993-1997: aged 15-69; from 1997-1998: aged 15-74.

The labor force based on the Labor Force Survey differs from the implied labor force from the Labor Market Board data. Here, the registered unemployment rate from the Labor Market Board data is taken to estimate the number of registered unemployed consistent with the labor force based on the Labor Force Survey.

Source: National authorities; and Fund staff estimates.

Labor market indicators are compiled only on a quarterly basis. Data are taken from the Estonian Labor Force Survey conducted in the third quarter of each year. Data on registered unemployment ar- taken from the Labor Market Board.

From 1993-1997: aged 15-69; from 1997-1998: aged 15-74.

The labor force based on the Labor Force Survey differs from the implied labor force from the Labor Market Board data. Here, the registered unemployment rate from the Labor Market Board data is taken to estimate the number of registered unemployed consistent with the labor force based on the Labor Force Survey.

Table 10.Estonia: Unit Labor Costs by Sector, 1993-1999 1/(1995=100)
1993199419951996199719981999 HI
Agriculture and hunting64.595.5100.0129.5133.6161.7
Forestry70.8130.8100.096.1126.6134.6
Fishing191.0215.1100.098.2147.2109.369.6
Mining and quarrying54.190.9100.0120.5101.9131.7158.6
Manufacturing42.371.2100.0113.9107.4111.4105.8
Electricity, gas and water supply50.988.9100.0120.2164.8212.6226.4
Construction78.3127.7100.0117.3151.3139.5143.3
Wholesale and retail trade50.088.7100.0126.0146.1161.2189.0
Hotels and restaurants43.071.9100.0120.299.397.478.5
Transport, storage and communications48.466.2100.0110.6100.2103.396.3
Real estate, renting and business activities43.578.5100.0113.7141.9164.6179.9
Financial intermediation37.164.3100.0116.5146.6213.2214.3
Public administration39.074.2100.0123.0135.1169.3198.3
Education41.659.1100.0121.8149.2170.0201.1
Health and social work53.791.0100.0136.2152.1167.4178.1
Other services50.679.0100.0125.0158.4176.1187.0
Total49.580.1100.0118.7129.2140.0145.1
Sources: National authorities; and Fund staff estimates.

Unit labor costs are defined as average monthly wage multiplied by employment divided by real value added.

Sources: National authorities; and Fund staff estimates.

Unit labor costs are defined as average monthly wage multiplied by employment divided by real value added.

Table 11.Estonia: Summary of General Government Operations, 1994-2000
19941995199619971998199919992000
Q1Q2Q3Q4Q1 (Prel.)
(In millions of kroons)
Total revenue12,46616,46720,43125,48528,88729,0835,6517,6087,6368,1887,014
Tax revenue11,71615,62419,40524,07627,12627,3835,3317,2657,1617,6266,516
Direct taxes7,4129,84011,86214,47317,32017,5183,5764,7214,5404,6814,207
VAT3,3094,1125,2636,6866,4136,4191,1571,6381,7111,9131,376
Excises6111,1371,7352,4012,7872,685457678736814496
Other taxes384534546516606761141228174218236
Nontax revenue7508431,0251,4091,7611,700321342475562499
Total expenditure11,60616,83321,10124,33929,03732,5427,0588,3327,9359,0177,203
Current expenditure10,35214,91918,63421,86025,94429,3186,5687,7266,8338,1916,758
Goods and services6,62810,05312,43714,68217,74019,9504,2125,4224,5075,8094,227
Current transfers and subsidies3,3974,6626,0416,8857,8659,0592,2692,2322,2482,3102,435
Interest payments3272041562933393098772787296
Capital expenditure 1/1,2371,9142,5672,4793,0933,2254908061,102827445
Financial surplus (+)/ deficit (-) 2/860-366-7701,106-150-3,459-1,406-924-299-829-189
Net lending (-)-476-146-41264-77-81-30-388-2122
Overall balance384-512-8111,410-227-3,540-1,436-963-291-850-167
Borrowing; requirement-384512811-1,4102273,5401,436963291850167
Domestic financing (net)-824-148297-7536691,171-156965835414
Foreign financing (net)4406605144382117109-218-8-144
Change in government deposits held abroad (-, increase)-700-524-771-1,5400265504297
Privatization proceeds 3/3,0233,0230000
(In percent of GDP)
Total revenue41.340.539.039.639.438.633.838.639.841.338.9
Tax revenue38.838.437.037.437.036.331.936.937.438.536.1
Direct taxes24.624.222.622.523.623.221.424.023.723.623.3
VAT11.010.110.010.48.78.56.98.38.99.78.7
Excises2.02.83.33.73.83.62.73.43.84.12.8
Other taxes1.31.31.00.80.81.00.81.20.91.11.3
Nontax revenue2.52.12.02.22.42.31.91.72.52.82.8
Total expenditure38.541.440.437.839.643.242.343.341.445.540.0
Current expenditure34.336.735.534.035.438.939.339.235.641.437.5
Goods and services22.024.723.722.824.226.525.227.523.529.323.4
Current transfers and subsidies11.311.511.510.710.712.013.611.311.711.713.5
Interest payments1.10.50.30.50.50.40.50.40 40.40.5
Capital expenditure 1/4.14.74.93.94.24.32.94.15.84.22.5
Finance surplus (+)/ deficit (-) 2/2.8-0.9-1.51.8-0.2-4.6-8.4-4.7-1.6-4.2-1.0
Net lending (-)-1.6-0.4-0.10.4-0.1-0.1-0.2-0.20.0-0.10.1
Overall balance1.3-1.3-1.52.2-0.3-4.7-8.6-4.9-1.5-4.3-0.9
Borrowing requirement-1.31.31.5-2.20.34.78.64.91.54.30.9
Domestic financing (net)-2.7-0.40.6-1.20.91.6-0.94.90.01.80.1
Foreign financing (net)1.51.61.00.10.10.20.70.00.10.0-0.8
Change in government deposits held abroad increase)-1.1-0.7-1.0-9.20.01.42.51.6
Privatization proceeds 3/4.018.10.00.00.00.0
Memorandum items
GDP (in million of kroons)30,17940,70552,44664,32473,32575,36016,69519,68919,17119,80518,028
Sources: Estonian authorities; and Fund staff estimates.

Includes capital expenditure from both budgetary and foreign resources.

Includes the combined balance of the Environment and Forestry Funds in 1996 and the first half of 1997.

Used for financing the general government deficit,

Sources: Estonian authorities; and Fund staff estimates.

Includes capital expenditure from both budgetary and foreign resources.

Includes the combined balance of the Environment and Forestry Funds in 1996 and the first half of 1997.

Used for financing the general government deficit,

Table 12.Estonia: General Government Revenue, 1994-2000
19941995199619971998199919992000
Q1Q2Q3Q4Q1 (Prel.)
(In millions of kroons)
Total revenue12,46616,46720,43125,48528,88729,0835,6517,6087,6368,1887,014
Tax revenue11,71615,62419,40524,07627,12627,3835,3317,2657,1617,6266,516
Direct taxes7,4129,84011,86214,47317,32017,5183,5764,7214,5404,6814,207
Corporate profits tax1,0381,0508911,2281,9141,6393228531832800
Personal income tax2,3883,3934,3525,2406,2336,5311,5421,4711,7921,7261,835
Social security tax2,1702,9173,8444,6375,3035,5201,0121,3851,5201,6041,430
Medical insurance tax1,6922,1312,5643,0973,5733,518649909971989929
Land tax12414921127029731051103748213
VAT3,3094,1125,2636,6866,4136,4191,1571,6381,7111,9131,576
Excises, o/w6111,1371,7352,4012,7872,685457678736814496
on alcohol753918935853169212253219206
on tobacco3505025375747415412921848
on fuel5268731,2221.150191289324346219
other excises106104931082424303124
Taxes on international trade19263355000009
Other taxes192471543511602761141228174218236
Nontax revenue7508431,0251,4091,7611,700321342475562499
(In percent of GDP)
Total revenue41.340.539.039.639.438.633.838.639.841.338.9
Tax revenue38.838.437.037.437.036.331.936.937.438.536.1
Direct taxes24.624.222.622.523.623.221.424.023.723.623.3
Corporate profits tax3.42.61.71.92.62.21.94.31.01.40.0
Personal income tax7.98.88.38.18.58.79.27.59.38.710.2
Social security tax7.27.27.37.27.27.36.17.07.98.17.9
Medical insurance tax5.65.24.94.84.94.73.94.65.15.05.2
Land tax0.40.40.40.40.40.40.30.50.40.40.1
VAT11.010.110.010.48.78.56.98.38.99.78.7
Excises, o/w2.02.83.33.73.83.62.73.43.84.12.8
on alcohol1.41.41.31.11.01.11.31.11.1
on tobacco0.70.80.70.80.40.80.71.10.3
on fuel1.01.41.71.51.11.51.71.71.2
other excises0.20.20.10.10.10.10.20.20.1
Taxes on international trade0.60.20.00.00.00.00.00.00.00.00.0
Other taxes0.61.21.00.80.81.00.81.20.91.11.3
Nontax revenue2.52.12.02.32.42.31.91.72.52.82.8
Memorandum items:
GDP (in million of kroons)30,17940,70552,44664,32473,32575,36016,69519,68919,17119,80518,028
Sources: Estonian authorities; and Fund staff estimates.
Sources: Estonian authorities; and Fund staff estimates.
Table 13.Estonia: General Government Expenditure, 1994-2000
19941995199619971998199919992000
Q1Q2Q3Q4Q1 (Prel.)
(In millions of kroons)
Total expenditure and net lending12,08216,97921,24224,07529,11332,6237,0878,5707,9279,0387,181
Total expenditure11,60616,83321,20124,33929,03732,5427,0588,5327,9359,0177,203
Current expenditure10,35214,91918,63421,86025,94429.3186,5687,7266,8338,1916,758
Expenditure on Roods and salaries6,62810,05312,43714,68217,74019,9504,2125,4224,5075,8094,227
Wages and salaries 1/3,1914,2374,9325,3086,7758,1491,6232,2971,7562,4721,539
Other purchases of goods and service3,4385,8167,5059,37410,96411,8012,5893,1252,7513,3362,688
Current transfers and subsidies3,3974,6626,0416,8857,8659,0592,2692,2322,2482,3102,435
Subsidies27320220019631135695827610395
Transport24220220019631135695827610395
Transfers to households3,1244,4605,8416,6897,5548,7032,1742,1502,1722,2082340
Pennons1,9702,9083,9644,6285,2006,4251,6101,6001,5961,6191,606
Family benefits5867698659351,1591,156265262342287321
Sickness benefits247380460552662607141168130168207
Unemployment benefits24287371571203524313030
Heating and housing allowance 2/243226280000000
Income maintenance3898450431386314103755383112
Other165107290802021192064
Interest payments3272041562933393098772787296
Capital expenditure 3/1,2371,9142,5672,4793,0933,2254908061,102827445
Net lending47614641-26477813038-821-22
(In percent of GDP)
Total expenditure and net lending40.041.740.537.439.743.342.543.541.345.639.8
Total expenditure38.541.440.437.839.643.242.343.341.445.540.0
Current expenditure34.336.735.534.035.438.939.339.235.641.437.5
Expenditure on goods and services22.024.723.722.824.226.525.227.523.529.323.4
Wages and salaries 1/10.610.49.48.39.210.89.711.79.212.58.5
Other purchases of goods and service11.414.314.314.615.015.715.515.914.316.814.9
Current transfers and subsidies11.311.511.510.710.712.013.611.311.711.713.5
Subsidies0.90.50.40.30.40.50.60.40.40.50.5
Transport0.80.50.40.30.40.50.60.40.40.50.5
Transfers to households10.411.011.110.410.311.513.010.911.311.11.8
Pensions6.57.17.67.27.18.59.68.18.38.21.2
Family benefits1.91.91.61.51.61.51.61.31.81.40.2
Sickness benefits0.80.90.90.90.90.80.80.90.70.80.0
Unemployment benefits0.10.10.10.10.10.20.20.10.20.20.6
Heating and housing allowance 2/0.80.60.10.00.00.00.00.00.00.00.4
Income maintenance0.10.20.90.70.50.40.60.40.30.40.5
Other0.10.10.00.10.10.10.10.10.10.10.0
Interest payments1.10.50.30.50.50.40.50.40.40.40.0
Capital expenditure 3/4.14.74.93.94.24.32.94.15.84.22.5
Net lending1.60.40.1-0.40.10.10.20.20.00.1-0.1
GDP (in million of kroons)30,17940,70552,44664,32473,32575,36016,69519,68919,17119,80518,028
Sources: Estonian authorities; and Fund staff estimates.

Wages and salaries of a number of budgetary institutions are included under “other goods and services”.

Combined with income maintenance in 1997.

Includes capital expenditure from both budgetary and foreign resources.

Sources: Estonian authorities; and Fund staff estimates.

Wages and salaries of a number of budgetary institutions are included under “other goods and services”.

Combined with income maintenance in 1997.

Includes capital expenditure from both budgetary and foreign resources.

Table 14.Estonia: Fiscal Balances by Government Sector, 1996-99(In millions of kroons)
1996199719981999
Central government
Revenue13,27013,70815,15015,024
Tax revenue12,67513,09114,42214,225
Nontax revenue596617728799
Revenue from property 1/166168272334
Other430449456465
Expenditure13,19512,19215,20416,867
Current11,96510,73413,32814,904
O/w: inter-governmental transfers4,0812,2362,659
Capital1,2301,4591,8761,963
O/w: inter-governmental transfers129188354
Domestic deficit (-)/ surplus (+)751,516-54-1,843
Capital expenditure (foreign financed)152-80-123-231
Net lending to nongovernment (foreign financed)4150-131-36
Overall deficit (-)/ surplus (+)-1181,485-308-2,110
Local government
Revenue and transfers4,0645,3336,3426,792
Revenue (own)6783,9394,7325,018
Current revenue3523,5854,3454,369
Revenue from property327355387428
Intergovernmental transfers3,3851,3941,6101,774
Expenditure4,4865,4216,4907,128
Current3,3684,4175,0495,480
Capital1,1191,0041,4411,649
Deficit-423-88-148-336
Capital expenditure (financed by foreign
borrowing through central government)163-12513-45
Overall deficit (-)/ surplus (+)-586-213-135-381
Social Insurance Fund
Revenue4,8015,7236,7817,127
O/w: inter-governmental transfers9101,0311,403177
Expenditure4,9415,7446,5637,875
Deficit (-)/ surplus (+)-140-21217-748
Medical Insurance Fund
Revenue2,5913,1433,6273,624
O/w: inter-governmental transfers
Expenditure2,5782,9653,6183,924
Deficit (-)/ surplus (+)131779-301
Forestry Fund 2/
Revenue432494677
Expenditure414480668
Deficit (-)/ surplus (+)18149
Environmental Fund 2/
Revenue81128137
Expenditure80160157
Deficit (-)/ surplus (+)-32-21-
Overall general government deficit (-)/ surplus (+)-8111,410-227-3,540
Memorandum items:
Nominal GDP52,44664,32473,32575,360
Source: Estonian authorities; and Fund staff estimates.

Including revenue from forestry (stumpage tax) for 1996. Starting from 1997, forestry revenue is included under other tax revenue.

Source: Estonian authorities; and Fund staff estimates.

Including revenue from forestry (stumpage tax) for 1996. Starting from 1997, forestry revenue is included under other tax revenue.

Table 15.Estonia: Fiscal Balances by Government Sector, 1996-99(On percent of GDP)
1996199719981999
Central government
Revenue25.321.320.719.9
Tax revenue24.220.419.718.9
Nontax revenue1.11.01.01.1
Revenue from property 1/0.30.30.40.4
Other0.80.70.60.6
Expenditure25.219.020.722.4
Current22.816.718.219.8
O/w: Sitter-governmental transfers7.83.53.60.0
Capital2.32.32.62.6
O/w: inter-governmental transfers0.2030.50.0
Domestic deficit (-)/ surplus (+)0.12.4-0.1-2.4
Capital expenditure (foreign financed)0.3-0.1-0.2-0.3
Net lending to nongovernment (foreign financed)0.10.1-0.20,0
Overall deficit (-)/ surplus (+)-0.22.3-0.4-2.8
Local government
Revenue and transfers7.78.38.69.0
Revenue (own)1.36.16.56.7
Current revenue0.75.65.95.8
Revenue from property0.60.60.50.6
Intergovernmental transfers6.52.22.22.4
Expenditure8.68.48.99.5
Current6.46.96.97.3
Capital2.11.62.02.2
Deficit-0.1-0.1-0.2-0.4
Capital expenditure (financed by foreign0.00.0
borrowing through central government)0.3-0.20.0-0.1
Overall deficit-1.1-0.3-0.2-0.5
Social Insurance Fund
Revenue9.28.99.29.5
O/w: inter-governmental transfers1.71.61.90.2
Expenditure9.48.99.010.4
Deficit-0.30.00.3-1.0
Medical Insurance Fund
Revenue4.94.94.94.8
O/w: inter-governmental transfers
Expenditure4.94.64.95.2
Deficit0.00.30.0-0.4
Forestry Fund
Revenue0.80.80.9
Expenditure0.80.70.9
Deficit0.00.00.0
Environmental Fund
Revenue0.20.20.2
Expenditure0.20.20.2
Deficit0.00.00.0
General government deficit/surplus-1.52.2-0.3-4,7
Memorandum item;
Nominal GDP (in millions of kroons)52,44664,32473,32575,360
Source: Estonian authorities; and Fund staff estimates.

Including revenue from forestry (stumpage tax) far 1996 Starting from 1997, Starting revenue is include under other tax revenue.

Source: Estonian authorities; and Fund staff estimates.

Including revenue from forestry (stumpage tax) far 1996 Starting from 1997, Starting revenue is include under other tax revenue.

Table 16.Estonia: Analytical Accounts of Banking Institutions, 1995-2000(in millions of kroons, end-of-period)
199519961997199819992000
DecMarJunSepDecMarJunSepDecJanFebMarApr
Net foreign assets2,083214-5,013-2,914-4,088-4,859-5,381-2,573-2,207-2,863-5,084-2,828-3,161-2,814-3,213
Foreign assets3,6974,0098,0789,4698,3357,2506,48110,1449,7769,1868,59810,1719,4349,45711,165
Foreign liabilities-1,614-3,79513,090-12,383-12,42312,109-11,862-12,71711,98312,049-13,682-12,99912,59512,270-14,378
Net domestic assets4,4689,66919,88118,82420,36621,01021,63719,59921,33622,16925,26722,96323,97424,49525,518
Domestic credit5,28310,48519,57820,79521,86922,37523,58622,27122,88323,57926,05125,80226,40226,70327,490
Net claims on government-1,721-1,432-2,342-2,278-2,439-2,725-1,466-1,996-1,235-1,076-617-827-470-549-346
Claims on general government6491,0071,0879789958569468601,0141,0491,1701,1661,1211,1281,099
General government deposits-2,371-2,439-3,429-3,256-3,434-3,581-2,412-2,857-2,249-2,125-1,787-1,993-1,591-1,677-1,445
Claims on nonfinancial public enterprises334425320240107107226267256346372329336331374
Claims on private sector6,0419,46516,62017,97318,60219,22618,50118,05718,42718,73719,77219,79219,86919,81919,888
Claims on households & individuals7381,7994,1144,1614,1884,2694,1814,2554,3194,8295,2575,2795,3125,4015,480
Claims on enterprises5,3037,66712,50614,84315,45216,11014,31913,80214,10813,90814,51514,51314,55714,41814,408
Claims on other financial institutions6292,0264,9804,8605,6005,7676,3265,9435,4345,5736,5246,5086,6687,1037,574
Other items (net)-815-815303-1,971-1,503-1,365-1,950-2,671-1,546-1,410-784-2,839-2,428-2,208-1,973
Reserves1,2931,9233,8853,1114,3973,5644,5103,2614,3894,6145,7914,2434,6174,5884,833
Credit from monetary authorities-89-48-23-24-17-17-15-15-13-13-11-11-12-12-12
Capital accounts-1,835-2,774-5,796-7,005-6,392-6,846-8,797-8,872-8,836-8,968-9,289-9,212-9,225-9,282-9,313
Counterpart funds-102-73-68-6700000000000
Government lending funds-819-915-672-783-686-707-555-564-552-543-541-534-541-477-480
Bonds-83-536-369-733-655-271-201-311-309-372-448-411-566-415-469
Other liabilities (net)8201,6073,3463,5291,8502,9123,1083,8313,7753,8723,7143,0873,2983,3893,467
Monetary liabilities6,5409,88414,86915,91116,27816,15116,25517,02619,12919,30620,18320,13520,81321,68222,305
Demand deposits4,4006,5148,5838,8238,9398,2588,2088,76810,48110,64111,17511,08911,65411,53811,941
Time & savings deposits1,0151,8353,1604,2394,1694,6404,7014,5264,7015,0205,1905,2385,2445,8575,882
Foreign currency deposits1,1261,5353,1262,8493,1703,2533,3463,7323,9483,6443,8183,8083,9164,2874,482
Sources: Bank of Estonia; and Fund staff estimates.
Sources: Bank of Estonia; and Fund staff estimates.
Table 17.Estonia: Maturity and Currency Composition of Deposits, 1994-2000
199419951996199719981999199819992000
DecMarJunSepDecMarJunSepDecMar
(In millions of kroons)
Total deposits6,9339,63513,84021,27821,47026,41221,89922,66022,51821,47022,79724,58525,02526,41227,756
Of which:
Demand Deposits5,6627,81510,37814,50012,76316,62714,09214,14013,40912,76313,22215,72115,65416,62717,078
In EEK4,7796,3548,10810,7449,82612,49010,96310,80910,3829,8269,83611,84811,96612,49012,716
In Foreign Currency8831,4602,2703,7562,9384,1373,1293,3313,0272,9383,3863,8733,6894,1374,363
Time Deposits1,2711,8203,4626,7798,7079,7847,8068,5209,1098,7079,5768,8649,3709,78410,677
In EEK9841,4742,7464,8565,5725,7135,6936,0326,2965,5726,1115,4675,7735,7136,653
Of which:
up to 6 months2294708012,2752,6052,5482,5812,7292,9592,6053,4602,5822,5312,5482,665
6-12 months5726791,4281,8052,3732,4632,2182,5532,6322,3732,0161,9292,1152,4633,296
over 1 year1833255177745946948917447055946329511,118694683
In Foreign Currency2883467161,9223,1354,0712,1142,4882.8143,1353,4653,3973,5974,0714,024
Of which:
up to 6 months1141682701,2541,7062,0839871,3031,4471,7061,6851,5341,7032,0832,005
6-12 months1611684315056959206156706756957187037639201,005
over 1 year1311151637341,0675085166917341,0611,1601,1321,0671,014
(In percent of total deposits)
Demand Deposits81.781.175.068.159.463.064.462.459.559.458.063.962.663.061.5
In EEK68.966.058.650.545.847.350.147.746.145.843.148.247.847.345.8
In Foreign Currency12.715.216.417.713.715.714.314.713.413.714.915.814.715.715.7
Tune Deposits18.318.925.031.940.637.035.637.640.540.642.036.137.437.038.5
In EEK14.215.319.822.826.021.626.026.628.026.026.822.223.121.624.0
Of which:
up to 6 months3.34.95.810.712.19.611.812.013.112.115.210.510.19.69.6
6-12 month*8.27.010.38.511.19.310.111.311.711.18.87.88.59.311.9
over I year2.63.43.73.62.82.64.13.33.12.82.83.94.52.62.5
In Foreign Currency4.13.65.29.014.615.49.711.012.514.615.213.814.415.414.5
Of which:
up to 6 months1.61.72.05.97.97.94.55.76.47.97.46.26.87.97.2
6-12 months2.31.73.12.43.23.52.83.03.03.23.22.93.03.53.6
over 1 year0.20.10.10.83.44.02.32.33.13.44.74.74.54.03.7
Memorandum Items:
Total foreign currency deposits1,1711,8062,9865,6786,0738,2085,2435,8205,8406,0736,8517,2717,2868,2088,387
Of which:(In percent of total foreign currency deposits)
DEM 1/n.an.an.a22.740.327.724.124.930.540.339.942.037.232.936.1
US$n.an.an.a65.547.158.762.661.355.447.149.949.454.058.755.7
Othern.an.an.a11.912.613.613.313.814.112.610.28.78.88.38.2
Source: Bank of Estonia.

After January 1, 1999 include all loans denominated in currencies that constitutes the Euro.

Source: Bank of Estonia.

After January 1, 1999 include all loans denominated in currencies that constitutes the Euro.

Table 18.Estonia: Maturity and Currency Composition of Loans, 1994-2000
199419951996199719981999199819992000
DecMarJunSepDecMarJunSepDecMar
(In million of kroons)
Total loans4,2766,73311,47620,26323,89826,66022,23723,41124,01023,89823,65823,52024,60626,66027,549
of which:
Short term loans (one year and less) 1/2,1012,1942,8784,6893,2013,8284,5724,5883,8293,2012,7292,3773,5043,8283,747
In EEK2,0601,8781,9102,5861,1821,0502,0841,6521,6801,1821,0109841,0271,050890
In Foreign Currency413169682,1032,0192,7792,4882,9362,1492,0191,7191,3932,4772,7792,857
Long term loans (over one year)2,1754,5398,59715,42120,69722,82917,45118,11420,18220,69720,92521,14021,09722,82923,801
In EEK2,0134,0215,8796,1114,5235,3095,7435,5945,3274,5234,2595,4064,8515,3095,349
Of which:
1-3 years1,2572,0592,6562,3601,5721,3572,2222,0461,9511,5721,2321,9571,2151,3571,388
over 3 years7561,9623,2243,7512,9513,9523,5213,5473,3762,9513,0273,4503,6363,9523,961
In Foreign Currency1615182,7189,31116,17417,52011,70712,52014,85416,17416,66515,73416,24617,52018,452
Of which:
1-3 years632067642,8354,7434,1183,6873,7424,4534,7435,3034,2644,1864,1184,044
over 3 years983121,9546,47611,43213,4028,0208,77810,40111,43211,36311,47012,05913,40214,408
(In percent of total loans)
Short term loans (one year and less) 1/49.132.625.123.113.414.420.619.615.913.411.510.114.214.413.6
In EEK48.227.916.612.84.93.99.47.17.04.94.34.24.23.93.2
In Foreign Currency1.04.78.410.48.410.411.212.58.98.47.35.910.110.410.4
Long term loans (over one year)50.967.474.976.186.685.678.577.484.186.688.489.985.785.686.4
In EEK47.159.751.230.218.919.925.823.922.218.918.023.019.719.919.4
Of which:
1-3 years29.430.623.111.66.65.110.08.78.16.65.28.34.95.15.0
over 3 years17.729.128.118.512.314.815.815.214.112.312.814.714.814.814.4
In Foreign Currency3.87.723.745.967.765.752.653.561.967.770.466.966.065.767.0
Of which:
1-3 years1.53.16.714.019.815.416.616.018.519.822.418.117.015.414.7
over 3 years2.34.617.032.047.850.336.137.543.347.848.048.849.050.352.3
Memorandum Items:
Total foreign currency loans2038343,68611,48318,19320,30114,28315,64117,00318,19318,38517,12718,72520,30121,309
Of which:(In percent of total foreign currency loans)
DEM 2/n.a.n.a.n.a.84.889.976.785.185.789.189.989.991.189.688.687.8
US $n.a.n.a.n.a.11.98.210.812.211.29.08.28.38.610.210.811.6
Othern.a.n.a.n.a.3.31.912.62.73.11.91.91.80.30.20.60.7
(In percent, unless otherwise indicated)
Total assets of banking system (in EEK millions)10,06714,85721,90238,76840,99447,07142,92142,73541,63640,99442,96843,42744,45247,07147,305
Total deposits/total assets68.964.863.254.952.456.151.053.054.152.453.156.656.356.158.7
Total loans/total deposits61.769.982.995.2111.3100.9101.5103.3106.6111.3103.895.798.3100.999.3
Short-term loans/total loans49.132.625.123.913.414.421.522.615.913.411.510.114.214.413.6
Short-term deposits/total deposits21.521.043.455.9113.962.860.880.5105.7113.991.463.958.262.865.6
Source: Bank of Estonia.

The bulk of short term loans have maturities in the 6-12 month range.

After January 1, 1999 includes all loans denominated in currencies that constitute the Euro.

Source: Bank of Estonia.

The bulk of short term loans have maturities in the 6-12 month range.

After January 1, 1999 includes all loans denominated in currencies that constitute the Euro.

Table 19.Estonia: Average Interest Rates of Deposits and Loans, 1994-2000(In percent)
1994199519961997199819992000
DecMarJunSepDecMarJunSepDecMar
Kroon denominated
Deposit rates 1/
Demand deposits2.72.62.5
Time deposits
up to 3 months8.85.94.712.210.35.66.67.93.93.03.02.93.1
3-6 months11.911.39.410.310.77.85.34.74.44.4
6-12 months11.69.28.412.412.211.011.412.99.97.16.76.16.0
over I year8.88.710.510.811.29.410.78.99.78.27.68.97.2
Lending rates 2/
Loans up to 3 months24.215.513.620.613.414.311.215.910.26.69.98.26.2
Loans 3 to 6 months25.216.313.814.015.214.116.217.613.615.312.29.68.9
Loans 6 to 12 months21.316.113.815.114.815.015.617.114.112.212.010.210.8
Loans 1-5 years18.616.115.912.014.616.914.016.59.39.18.47.97.4
Loans 5 to 10 years13.013.011.110.911.912.311.314.713.411.911.09.010.9
Loans over 10 years7.48.510.910.614.513.99.710.710.610.2
Euro denominated
Deposit rates4.13.63.01.72.13.03.9
up to 3 months4.13.62.91.72.13.03.3
3-6 months4.23.63.02.83.33.4
6-12 months4.24.43.83.23.54.0
over 1 year2.31.63.63.86.0
Lending rates 2/10.98.89.37.16.8
Short term11.410.19.04.64.7
Long term10.78.79.37.99.0
Money market rates
Bank of Estonia CD auction rate 3/5.64.44.2
Interbank overnight loans 4/5.44.33.617.112.96.511.216.03.23.3
Source: Bank of Estonia.

Weighted average annual interest rates on deposits placed with commercial banks by individuals and companies.

Weighted average annual interest rates on loans granted to individuals and companies by commercial banks.

After 1997, there were occasions when no CDs were sold at auction and therefore no rate was set. The auction program was terminated by the Bank of Estonia in May 2000.

Absence of rate indicates there was no activity during that month.

Source: Bank of Estonia.

Weighted average annual interest rates on deposits placed with commercial banks by individuals and companies.

Weighted average annual interest rates on loans granted to individuals and companies by commercial banks.

After 1997, there were occasions when no CDs were sold at auction and therefore no rate was set. The auction program was terminated by the Bank of Estonia in May 2000.

Absence of rate indicates there was no activity during that month.

Table 20.Estonia: Nonperforming Loans of Commercial Banks, 1994-2000
1994199519961997199819992000
MarJunSepDecMarJunSepDecMarJunSepDecMar
(In millions of kroons; end of period)
Total159209283247268213241273249308326764620665461618
Overdue up to 30 days265334484225666084957520015410514104
Overdue from 30-60 days33363826156141919452711936311210
Overdue over 60 days100120211173211182161194146168224445430529435504
(In percent of total loan portfolio)
Total3.63.12.41.91.71.11.21.21.11.31.43.22.62.71.72.2
Overdue up to 30 days0.60.80.30.40.30.10.30.30.40.40.30.80.70.40.10.4
Overdue from 30-60 days0.70.50.30.20.10.00.10.10.10.20.10.50.20.10.00.0
Overdue over 60 days2.31.81.81.31.30.90.80.90.60.70.91.91.82.21.61.8
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 21.Estonia: Commercial Bank Profits (on a consolidated basis), 1994-2000
199419951996199719981999199819992000
YearQ1Q2Q3Q4Q1Q2Q3Q4Q1
(In millions of kroons)
Total profits (pre-tax)683305641,070-501629335-32751-560137195191106242
Of which:
Net interest Income6317631,0261,4411,3911,751422445101423462408415466445
Interest income9441,1771,7232,6593,0853,507959941335850968850816873805
Interest expenses3134146971,2171,6941,756537496234427506442401407360
Net commission income31754846657415516146104129156140149147
Commission income45079969382621424970161184230201210209
Commission expenses133251228251598724575574616162
Income from financial investments5231661172111312044-51-92-384451031
Net income from financial operations371715-235417111-142-156-4810412010687126
Administrative expenses6127811,0271,2471,0691,31837638635272296349309363317
Valuation adjustments44325-289-504-1,076-910-97-450146-675-223-183-166-337-160
(In percent)
Memorandum items:
Return on assets 1/0.62.12.42.6-1.21.30.8-0.10.1-1.40.30.40.40.20.5
Return on capital 2/10.523.427.126.9-7.58.66.6-7.21.0-8.42.12.92.81.43.2
Sources: Bank of Estonia; and Fund staff estimates.

Defined as ratio of pre-tax profits to total assets.

Defined as ratio of pre-tax profits to capital.

Sources: Bank of Estonia; and Fund staff estimates.

Defined as ratio of pre-tax profits to total assets.

Defined as ratio of pre-tax profits to capital.

Table 22.Estonia: Balance of Payments 1995-1999
19951996199719981999

Prel.
(In millions of DM)
Current Account-226-601-977-844-580
Trade Balance-952-1,536-1,957-1,965-1,617
Exports2,4292,7293,9844,7234,505
Imports-3,380-4,265-5,941-6,688-6,122
Services Balance5417811,0291,0061,080
Receipts1,2531,6692,2962,6012,738
of which:
Transportation5346641,1451,2441,283
Travel5097298269471,013
Construction909710210156
Payments-712-888-1,267-1,594-1,658
of which:
Transportation-318-403-593-719-679
Travel-129-152-210-271-395
Construction-41-36-36-54-36
Income43-251-146-223
Employee compensation-21121
Investment Income62-253-148-224
of which:
Direct Investment-36-37-201-130-211
Portfolio Investment5966-156146
Current Transfers181151203260180
Capital and Financial Account3548001,369859889
Capital Transfers-1-1032
Financial Account3558011,369856887
Direct Investment285166223999420
From abroad 1/2892274621,009559
of which:
Equity14627170708296
Reinvested dividends222716349128
Other capital121173129253135
Outward (by Estonians)-4-61-239-10-138
Net equity investment 1/2123966113442
Loans and other investments 2/483951,081-25625
of which:
Banks352637973711
Government7940-79-103-60
Monetary Authorities0-28-38-3839
Errors and Omissions22-45-461-37
Overall balance14915434616273
Change in official reserves (- increase)-149-154-346-16-273
Memorandum Items:(Units as indicated)
DM/US$ exchange rate (period average)1.431.501.731.761.83
Gross International Reserves 3/4/5/
(DM millions)8369951,3631,3641,667
In months of imports3.02.82.82.43.3
(In percent)
Trade Balance/GDP-18.7-23.4-24.3-21.4-17.2
Current Account/GDP-4.4-9.2-12.1-9.2-6.2
Sources: Bank of Estonia and Fund staff estimates.

The large flows in 1998 were associated with the purchase by Swedish banks of substantial interests in the two largest Estonian banks.

Includes operations in debt securities.

Excludes Government deposits held abroad (including in the SRF).

Changes in gross international reserves may differ from flows implied by overall balance of payments due to valuation changes.

Gross international reserves at end-1999 were inflated by banks shifting resources from accounts abroad to the Bank of Estonia to enhance liquidity in anticipation of Y2K-related problems.

Sources: Bank of Estonia and Fund staff estimates.

The large flows in 1998 were associated with the purchase by Swedish banks of substantial interests in the two largest Estonian banks.

Includes operations in debt securities.

Excludes Government deposits held abroad (including in the SRF).

Changes in gross international reserves may differ from flows implied by overall balance of payments due to valuation changes.

Gross international reserves at end-1999 were inflated by banks shifting resources from accounts abroad to the Bank of Estonia to enhance liquidity in anticipation of Y2K-related problems.

Table 23.Estonia: Direction of Trade - Exports by Countries 1994-2000
199419951996199719981999199819992000
Q1Q2Q3Q4Q1Q2Q3Q4Q1
(In millions of kroons)
Finland2,9574,4224,4165,9948,3108,1361,5931,8252,1922,6991,9121,7971,9982,4293,111
Sweden1,8042,2392,8155,3957,3337,8751,7831,9501,6821,9181,8012,1241,9352,0142,665
Germany1,1161,3921,5472,1242,3442,9685566185576136496857798541,354
Latvia1,2871,4231,7402,6623,2952,873766882878769593693785801777
Russia3,4943,0912,9954,5523,9401,8841,3171,108719796526519493346241
Denmark4756268551,2151,5001,640386363328423416422377425465
Great Britain4546257611,3831,7071,600436459419394350424416409486
Lithuania7638551,0991,4491,5431,174366419425333262294339279291
Netherlands5068276981,032823899156205209253209243228219240
Italy1471592212723033947464641019610470124154
Other 1/2,6263,3494,0995,5296,4466,3711,6531,7941,4861,5131,3531,5361,6491,8322,043
Total15,62819,00921,24731,60737,54535,8139,0869,6868,9609,8138,1688,8419,0719,73211,829
(Shares in total exports)
Finland18.923.320.819.022.122.717.518.824.527.523.420322.025.026.3
Sweden11.511.813.217.119.522.019.620.118.819522.024.021.320.722.5
Germany7.17.37.36.76.28.36.16.46.26 27.97.78.68.811.4
Latvia8.27.58.28.48.88.08.49.19.87.87.37.88.78.26.6
Russia22.416.314.114.410.55.314.511.48.08.16.45.95.43.62.0
Denmark3.03.34.03.84.04.64.23.73.74.35.14.84.24.43.9
Great Britain2.93.33.64.44.54.54.84.74.74.04.34.84.64.24.1
Lithuania4.94.55.24.64.13.34.04.34.73.43.23.33.72.92.5
Netherlands3.24.43.33.32.22.51.72.12.32.62.62.72.52.22.0
Italy0.90.81.00.90.81.10.80.70.71.01.21.20.81.31.3
Other 1/16.817.619.317.517.217.818.218.516.615.416.617.418.218.817.3
Total100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
Source: Bank of Estonia.

Includes exports to “customs-free” zones that were established in November 1999.

Source: Bank of Estonia.

Includes exports to “customs-free” zones that were established in November 1999.

Table 24.Estonia: Direction of Trade - Imports by Countries 1994-2000
199419951996199719981999199819992000
Q1Q2Q3Q4Q1Q2Q3Q4Q1
(In millions of kroons)
Finland7,57910,78213,40518,09520,54318,6844,6265,2565,4905,1714,0844,4504,7165,4346,115
Sweden1,9222,5123,1105,1695,5725,0421,3221,4511,3501,4491,1771,3111,2141,3401,479
Germany1,7872,3423,2335,0995,7514,7751,4361,5381,4641,3131,0811,1031,1911,4001,313
Russia3,2003,9513,7744,1534,1733,9331,1371,1199041,0138981,0008811,1531,425
Latvia4198161,1531,7492,1942,174553537582521448516532678592
Netherlands7049221,2421,8881,9411,636582463457439353421382480472
Denmark6107891,0181,5461,8501,581438529439444336390416439421
Italy3746278841,2011,4951,434335432365362297377332429353
Lithuania6025607199821,1601,052235306305314200246280325229
Great Britain3374957841,2071,3751,026292368356359241257253276304
Other2,5673,6285,3457,7829,1629,1392,1502,7132,1902,1081,9212,0822,2442,8922,487
Total20,10227,42534,66748,86955,21550,47713,10614,71113,90413,49411,03612,15412,43914,84615,189
(Shares in total imports)
Finland37.739.338.737.037.237.035.335.739.538.337.036.637.936.640.3
Sweden9.69.29.010.610.110.010.19.99.710.710.710.89.89.09.7
Germany8.98.59.310.410.49.511.010.510.59.79.89.19.69.48.6
Russia15.914.410.98.57.67.88.77.66.57 58 18.27.17.89.4
Latvia2.13.03.33.64.04.34.23.74.23.94.14.24.34.63.9
Netherlands3.53.43.63.93.53.24.43.13.33.33.23.53.13.23.1
Denmark3.02.92.93.23.43.13.33.63.23.33.03.23.33.02.8
Italy1.92.32.52.52.72.82.62.92.62.72.73.12.72.92.3
Lithuania3.02.02.12.02.12.11.82.12.22.31.82.02.32.21.5
Great Britain1.71.82.32.52.52.02.22.52.62.72.22.12.01.92.0
Other12.813.215.415.916.618.116.418.415.815.617.417.118.019.516.4
Total100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 25.Estonia: Composition of Trade - Exports by Commodities 1994-2000
199419951996199719981999199819992000
Q1Q2Q3Q4Q1Q2Q3Q4Q1
(In millions of kroons)
Foodstuffs3,4013,0823,1905,1214,9693,1761,5101,4271,085946909783744740683
Mineral products1,0591,2361,2341,393977880274261225217137163270309316
Chemical industry products1,3732,0022,1622,6742,7602,390737778652593505611639635616
Clothing, footwear, headgear2,7653,3344,0775,1386,0185,9461,4681,4731,5001,5781,4501,4511,4661,5791,644
Timber and paper products1,8482,6723,0505,2216,4247,0651,5391,7941,4951,5961,5811,9491,7791,7572,235
Metal and metal products1,2281,3121,3802,1603,0222,719613727761921568712792648811
Machinery and equipment1,5202,6583,0205,7258,3358,4781,7361,8992,0092,6921,8951,8772,0832,6224,089
Transport vehicles9609068711,1261,2481,042327332292297267304235235242
Furniture9141,1681,4501,8622,3912,756553597592649587679683806820
Other goods5606398121,1871,4001,361329398349323267313379401374
Total15,62819,00921,24731,60737,54535,8139,0869,6868,9609,8138,1688,8419,0719,73311,829
(Shares in total exports)
Foodstuffs21.816.215.016.213.28.916.614.712.19.611.18.98.27.65.8
Mineral products6.86.55.84.42.62.53.02.72.5221.71.83.03.22.7
Chemical industry products8.810.510.28.57.46.78.18.07.36.06.26.97.06.55.2
Clothing, footwear, headgear17.717.519.216.316.016.616.215.216.716.117.816.416.216.213.9
Timber and paper products11.814.114.416.517.119.716.918.516.716.319.422.019.618.018.9
Metal and metal products7.96.96.56.88.07.66.87.58.59.47.08.08.76.76.9
Machinery and equipment9.714.014.218.122.223.719.119.622.427.423.221.223.026.934.6
Transport vehicles6.14.84.13.63.32.93.63.43.33.0333.42.62.42.0
Furniture5.86.16.85.96.47.76.16.26.66.67.27.77.58.36.9
Other goods3.63.43.83.83.73.83.64.13.93.33.33.54.24.13.2
Total100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 26.Estonia: Composition of Trade - Imports by Commodities 1994-2000
199419951996199719981999199819992000
Q1Q2Q3Q4Q1Q2Q3Q4Q1
(In millions of kroons)
Foodstuffs3,0353,7684,9866,2066,2605,4541,6091,6461,5401,4651,1761,3721,2951,6111,268
Mineral products2,7322,8993,1923,8573,1983,0287978357148525806467491,0541,012
Chemical industry products2,3923,5174,5245,9806,3826,4381,5131,7961,5931,4801,3681,6361,6771,7581,640
Clothing, footwear, headgear2,7213,5634,3105,3586,0705,6661,4761,5971,5121,4851,2931,4881,3391,5461,522
Timber and paper products8541,3801,6752,3012,7292,642709707695618614646654728815
Metal and metal products1,1271,9642,8084,1375,1144,1341,2011,4631,4031,0477681,0461,1511,1691,212
Machinery and equipment4,1386,2037,87112,34916,26215,5253,5093,9154,3104,5283,3783,5083,7994,8405,782
Transport vehicles1,5221,9072,5265,1735,3053,8291,4001,7541,1161,0351,067916851995978
Furniture5848191,0021,2791,4401,289319366353402294303289403331
Other goods9971,4051,7732,2282,4542,471572633666583499593635743629
Total20,10227,42534,66748,86955,21550,47713,10614,71113,90413,49411,03612,15412,43914,84615,189
(Shares in total imports)
Foodstuffs15.113.714.412.711.310.812.311.211.110.910.711.310.410.98.3
Mineral products13.610.69.27.95.86.06.15.75.16.35.35.36.07.16.7
Chemical industry products11.912.813.012.211.612.811.512.211.511.012.413.513.511.810.8
Clothing, footwear, headgear13.513.012.411.011.011.211.310.910.911.011.712.210.810.410.0
Timber and paper products4.25.04.84.74.95.25.44.85.04.65.65.35.34.95.4
Metal and metal products5.67.28.18.59.38.29.29.910.17.87.08.69.37.98.0
Machinery and equipment20.622.622.725.329.530.826.826.631.033.630.628.930.532.638.1
Transport vehicles7.67.07.310.69.67.610.711.98.07.79.77.56.86.76.4
Furniture2.93.02.92.62.62.62.42.52.53.02.72.52.32.72.2
Other goods5.05.15.14.64.44.94.44.34.84.34.54.95.15.04.1
Total100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0100.0
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 27.Estonia: Foreign Direct Investment Inflows by Countries 1994-99
19941995199619971998199919981999
Q1Q2Q3Q4Q1Q2Q3Q4
(In millions of kroons)
Denmark34801682124692915113166221-9616215209
Finland6371936291,1281,7411,64955034568316290743021598
Germany355680183225884751507753-3-2664
Latvia12-35-2536-1224-17-20-423143
Lithuania0-3-7-37454-227-18-3-1141151
Netherlands198-101220546-2-6914925-59-25292-115-154
Norway4577674723115757-13111772311155-33
Russia423-60-5-54-193775-41-99-581175-9954
Sweden5321,1411803664,7801,4682361392,1782,226399298311459
United Kingdom8918342188387125562402863-55255897
USA14920145913914537616119128-118381491827
Other72047018460626315045133-261114387191
Total2,8192,3131,8143,6948,0744,4689811,3043,0092,7801,3891,585639856
Memo Items:(In percent of total)
Finland22.68.334.730.521.636.956.126.522.75.865.327.133.611.4
Sweden18.949.39.99.959.232.924.110.772.480.128.818.848.753.7
USA5.38.725.33.81.88.41.69.14.3-4.22.79.428.50.8
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 28.Estonia: Foreign Direct Investment Outflows by Countries 1994-99 1/
19941995199619971998199919981999
Q1Q2Q3Q4Q1Q2Q3Q4
(In millions of kroons)
Finland0-1-11-26424727-619159-64-10
Lithuania0-14-26-480-35-693-124-859479-16-173-115-389
Latvia0-23-115-878-332-560-201-34514965-109-26-331-94
Russia-43-6-10231-8-10-6-249-42-1-4
Sweden0-31-1-23-16-I-3-15-5-4-14-2728
Ukraine0n.a.-2-94-76-3-24-244-32-326-7
Other-269-324-33231216757037-21-273108-7-66132
Total-30-29-485-1,913-82-1,108237-432228-115-5-227-532-344
Source: Bank of Estonia.

n.a. denotes that data are not published due to confidentiality provisions (when there are less than 3 projects during the reporting period).

Source: Bank of Estonia.

n.a. denotes that data are not published due to confidentiality provisions (when there are less than 3 projects during the reporting period).

Table 29.Estonia: Foreign Direct Investment Inflows by Sectors 1994-99
19941995199619971998199919981999
Q1Q2Q3Q4Q1Q2Q3Q4
(In millions of kroons)
Agriculture, Fishing, Energy, Gas, Water (inc. Mining)38-9-11480233387887-914715556-54231
Manufacturing1,4819384961,2381,5451,139316637666-74289237431182
Construction186396316181259387-215323-48
Trade438823895553942381252318258114345269-21-211
Hotels and restaurants39635977376813206-212271317
Transports and communication5193212258613001,09511173-139255603519102-129
Financial intermediation88146266244,30991742272,1242,116-77249102643
Real estate and business activities745312716842433612712283915312635122
Others124-286230123137204117463049849
Total2,8192,3131,8143,6948,0744,4639811,3043,0092,7801,3891,585639856
Memorandum Items:(In percent of total)
Manufacturing52.540.627.333.519.125.532.248.822.1-2.720.815.067.421.3
Transports and communication18.413.912.423.33.724.511.35.6-4.69.243.432.716.0-15.1
Financial intermediation3.16.31.416.953.420.54.32.170.676.1-5.515.716.075.1
Source: Bank of Estonia.
Source: Bank of Estonia.
Table 30.Estonia: Foreign Direct Investment Outflows by Sectors 1994-99 1/
19941995199619971998199919981999
Q1Q2Q3Q4Q1Q2Q3Q4
(In millions of kroons)
Agriculture, Fishing, Energy, Gas, Water (inc. Mining)0000n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.
Manufacturing0-7-46-20342-336-237-361-121-27-97-92
Construction0-1-1-144123-23621298-3-715
Trade-7-204-81-179-3-21-2511-144-35-26-1976
Hotels and restaurants000n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.n.a.
Transports and communication0-3-256-3253903458335-18-210135-17-77-7
Financial intermediationn.a.n.a.-173-1,108-317-735-254-41522213026-117-342-302
Real estate and business activitiesn.a.5-11-176-9-96-47-311752-18-3611-53
Others-23-3-2-5-1316-4233-3-1330-1-119
Total-30-29-485-1,913-82-1,108237-432228-115-5-227-532-344
Memorandum Items:(In percent of total)
Manufacturing0.024.19.510.6-51.230.3-9.7-1.6-1.3-53.02,420.011.918.226.7
Transports and communication0.010.552.717.0-475.6-3.1246.0-8.1-7.9182.6n.a.7.514.52.0
Financial intermediationn.a.n.a.35.757.9386.666.3-107.296.197.4-113.0-520.051.564.387.8
Source: Bank of Estonia.

n.a. denotes that data are not published due to confidentiality provisions (when there are less than 3 projects during the reporting period).

Source: Bank of Estonia.

n.a. denotes that data are not published due to confidentiality provisions (when there are less than 3 projects during the reporting period).

Table 31.Estonia: Gross External Debt, 1996-1999
1996 1/199719981999
(In millions of DM)
Gross external debt 2/1,6703,7634,0144,461
Public523501502639
Of which securities1505067
Of which general government339345391464
Private1,1473,2613,5123,822
Of which trade credits334449542575
Of which securities49683623460
Short term9601,5921,5191,834
Public109000
Of which general government0000
Private8511,5921,5191,834
Long term7102,1702,4952,626
Public414501502638
Of which general government339345391464
Private2971,6691,9931,988
(In percent of GDP)
Gross external debt 2/25.546.843.847.4
Public8.06.25.56.8
Of which securities0.20.00.50.7
Of which general government5.24.34.34.9
Private17.540.638.340.6
Of which trade credits5.15.65.96.1
Of which securities0.78.56.84.9
Short term14.619.816.619.5
Public1.70.00.00.0
Of which general government0.00.00.00.0
Private13.019.816.619.5
Long term10.827.027.227.9
Public6.36.25.56.8
Of which general government5.24.34.34.9
Private4.520.821.721.1
Source: National authorities.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits and use of Fund resources.

Source: National authorities.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits and use of Fund resources.

Table 32.Estonia: Foreign Assets, 1996-1999 1/
1996 2/199719981999
(In millions of DM)
Foreign assets 3/8881,7412,1072,471
Public 4/748164252
Of which securities0000
Private8801,6931,9432,219
Of which trade credits238351479472
Of which securities148270301568
Short term6711,2951,5331,687
Public 4/748164252
Private6631,2471,3691,435
Long term217445574784
Public 4/0000
Private217445574784
(In percent of GDP)
Foreign assets 3/13.521.623.026.2
Public 4/0.10.61.82.7
Of which securities0.00.00.00.0
Private13.421.021.223.6
Of which trade credits3.64.45.25.0
Of which securities2.33.43.36.0
Short term10.216.116.717.9
Public 4/0.10.61.82.7
Private10.115.514.915.2
Long term3.35.56.38.3
Public 4/0.00.00.00.0
Private3.35.56.38.3
Source: National authorities.

Excluding reserve assets.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits.

Excludes reserve assets and use of Fund resources.

Source: National authorities.

Excluding reserve assets.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits.

Excludes reserve assets and use of Fund resources.

Table 33.Estonia: Net External Debt, 1996-1999
19961/199719981999
(In millions of DM)
Gross external debt 2/1,6703,7634,0144,461
Foreign Assets 3/8881,7412,1072,471
Net external debt 4/7832,0221,9061,990
Long term4931,7251,9201,842
Short term289297-14147
External debt net assets held by the general
government, the monetary authorities, and
the banking sector1,1722,7793,0293,076
(In percent of GDP)
Gross external debt 2/25.546.843.847.4
Foreign Assets 3/13.521.623.026.2
Net external debt 4/11.925.120.821.1
Long term7.521.521.019.6
Short term4.43.7-0.21.6
Source: National authorities.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits and use of Fund resources.

Exluces reserve assets and use of Fund resources. Includes trade credits.

Gross external debt less foreign assets

Source: National authorities.

Figures for 1996 are not official and may suffer from inaccuracies.

Includes trade credits and use of Fund resources.

Exluces reserve assets and use of Fund resources. Includes trade credits.

Gross external debt less foreign assets

ESTONIA: SUMMARY OF THE TAX SYSTEM

(As of January 1, 2000)

Personal Income Tax

(Income Tax Law, effective January 1, 2000)

Tax Base

1. Residents pay tax on their worldwide income. Taxable income includes, in particular, income from employment (salaries, wages, bonuses and other remuneration including fringe benefits); business income; interest from loans, promissory notes and other securities; royalties; gains from disposal of assets; pensions and scholarships (except pensions paid on the basis of the Public Pension Insurance Act and scholarships paid on the basis of law); insurance benefits; and alimony payments received. Taxable income does not include dividends, which are subject to income tax as part of enterprise income. Unilateral relief for double taxation, if income is derived from abroad, is available in the form of ordinary tax credit for tax paid abroad. The credit is limited to the Estonian tax computed on the item of income. If the income is derived from several foreign countries, the computation is made separately for each country.

2. Nonresidents pay tax on their income from Estonian sources as listed in the Income Tax Act: income from work under a labor contract or contractor’s agreement in Estonia; income from a business carried on in Estonia; dividends paid by Estonian companies; interest payable by the Estonian state and residents; royalties (authors’ remuneration, income from the sale or other use in Estonia of a patent, work protected by copyright, trade mark, software, information, and know-how); income from the lease of assets located in Estonia; gains from disposal of assets located in Estonia; directors’ fees paid by Estonian enterprises; and income of a sportsman or an artist from his activities in Estonia.

Exemptions

3. For resident persons, there is a basic exemption of EEK 9,600 (since January 1, 2000). The following income of such persons is not subject to personal income tax: certain capital gains; pensions paid on the basis of the Public Pension Insurance Act and scholarships paid on the basis of law; interest paid by resident credit institutions and the Compensation Fund; indemnification paid to an employee for work accidents; per diem and accommodation reimbursements for business trips; compensation for the use of private vehicles; amounts paid to employees to cover representation costs; insurance proceeds and other payment received under insurance contracts; child allowances and other subsidies and compensation paid from the State, local, or Social Insurance budgets; inheritances and gifts received; assets restituted in the course of property reform; and lottery winnings; compensation prescribed by law or established by the Government of the Republic of Estonia and international cultural and scientific awards and prizes; assets distributed in the course of property reform; expropriation payments and compensation received for expropriation.

4. Persons whose income is not subject to taxation comprise: foreign diplomatic representatives, consular representatives, special or diplomatic missions, representatives of international or intergovernmental organizations and cooperation programs exercising their official functions in Estonia, plus persons employed with them who are not citizens or permanent inhabitants of Estonia. The above-mentioned persons, with the exception of the members of representations of cooperation programs, must be registered in the Ministry of Foreign Affairs.

5. Not subject to tax is the documented taxable income derived by a natural person from the realization of self-produced, unprocessed agricultural products in 1998 up to the amount of EEK 45,000.

Rate Structure

6. There is a general flat rate of 26 percent of taxable income. The withholding tax rate on royalties, payments to nonresidents for services provided in Estonia, and on payments to nonresident artists and sportsmen the rate is 15 percent. The withholding tax rate on pension payments that are not paid on the basis of the Public Pension Insurance Act is 10 percent. The period of taxation is the calendar year.

7. Employment income is subject to a withholding tax at the general rate of 26 percent. The withholding agent (enterprise or employer) has the obligation to remit the relevant amounts to the tax authority monthly. A taxpayer who has only income from one place of employment on which income tax has been withheld or whose annual income does not exceed EEK 9,600 has no obligation to file a tax return. Otherwise, tax returns are due by March 31 of the year following the period of taxation.

Tax allocation

8. From January 1, 1996, 44 percent of tax revenue from income tax of persons accrues to the state budget and the balance to the budget of the local authorities of the place of residence of the taxpayer.

Enterprise Income Tax

(Income Tax Act, effective January 1, 2000)

9. Resident or nonresident enterprises whose income is subject to taxation under the Income Tax Law. Legal entities are residents in Estonia if they are incorporated there. Limited partnerships are taxed as legal entities.

Tax Base

10. Effective January 1, 2000 the income tax on enterprise retained earnings was abolished.

11. Enterprises will continue, however, to pay a 26 percent income tax on dividends and other profit distributions. Income tax on enterprise expenses not directly related to their business was also introduced effective January 1, 2000, also at a rate of 26 percent. The latter includes, inter alia: (i) membership fees paid to non-profit undertakings unless participation in such undertakings is directly related with the taxpayer’s business; (ii) expenses incurred on catering, accommodation, transportation and cultural services in the event of reception of guests or business partners; (iii) expenses on acquisition of property which is not to be used in, or purchase of services which are unnecessary for, the enterprise of the taxpayers; and (iv) payment of default interest or penalties, extrajudicial compensation for damage, and loans or advance payments given to legal persons established in low-tax territories.

Value-Added Tax (VAT)

(Law on Value-Added Tax, effective January 1, 1994)

Coverage

12. Enterprises whose taxable turnover exceeds EEK 250,000 in a calendar year.

Tax Base

13. Tax is charged on transactions in goods and services in Estonia and on importation of goods (excluding exemptions). The tax period is the calendar month and VAT returns are due to be filed by the 20th day of the month following the relevant period.

Exemptions

14. Services exempt are: education; public mail; medical and health-related; funeral and related; banking and insurance; organization of gambling; lottery tickets; letting of housing; social services; scientific research activities and research establishments funded from the state budget (until December 31, 2000).

15. Goods exempt include: medicine, health equipment and medical diagnostic goods (will be taxed at a VAT rate of 5% effective January 1, 2001).

16. Goods imported by persons with diplomatic status, etc., or certain other goods and services purchased by such persons (as determined by the Ministry of Finance). Assets imported for nonprofit purposes (as determined by the Government of Estonia).

17. Goods imported by individual persons subject to certain limits set by the Ministry of Finance.

Rate Structure

18. The tax rate is 18 percent of taxable value. The VAT rate is 5 percent for books (excluding textbooks and workbooks for basic school and gymnasiums). The VAT rate is zero for: (1) exports; (2) subscribed periodicals; (3) tickets of theatrical performances and concerts organized by theatres and concert organizations included in the list approved by the Minister of Culture; (4) textbooks and workbooks for basic schools and gymnasiums; (5) goods and services sold to non-profit associations and foundations enjoying income tax allowances in the list approved by the Government of the Republic of Estonia, and to state and local government institutions for money granted to these juridical persons and institutions as state foreign loans and as state foreign aid by organizations found in a list provided by the Government of the Republic of Estonia; and (6) thermal energy, peat, briquettes, coal and firewood sold to households (VAT of 18 percent is scheduled to be applied on the above heating fuels effective July 1, 2000).

Tax allocation

19. Tax accrues wholly to the state budget. Registration of enterprises is undertaken by the National Tax Board, which also administers VAT on domestic goods and services. The Customs Board administers the tax for imports.

Social Tax

(Law on Social Tax, effective January 1, 1999)

Tax Base

20. Employers’ payments in cash and in kind made to persons. Natural persons pay tax on income derived from entrepreneurship, but for each insurable person able to work not less per month than the amount calculated from the official minimum wage and not more than the amount calculated from fifteen times the minimum wage.

Tax Rates

21. Social tax rate is 33 percent of the taxable amount, of which 20 percent is paid to the Social Insurance Fund (Pension Fund) and 13 percent is paid to the Medical Insurance Fund. Taxes are due monthly. The remittance of the social tax is made simultaneously with the remittance of withholding tax; the tax is paid by the 10th day of the following month.

Tax Allocation

22. From January 1, 1999 the social tax payable is recorded in “notional” personal accounts, although no funds are accumulated in these accounts. Tax accrues directly to the accounts of the state health and pension insurance funds.

Land Tax

(Law on Land Tax, effective July 1, 1993)

Eligibility

23. National land tax is paid on all land except where: (1) economic activity is prohibited; (2) land is attached to buildings of diplomatic or consular missions of foreign countries; (3) land is under churches and temples of congregations or used as cemeteries; (4) land is in state ownership; (5) land is used by a foreign country or international organization; (6) land is in general use and reserve land of the local authority on the decision of the Government of Estonia. In addition, local land tax is not paid on land in municipal ownership or land in public use based on the decision of the local authority.

Tax Base

24. Taxable value determined by Law on Land Value.

Exemptions

25. There are only 2 temporary exemptions, which are following:

Until December 31, 2000, the rate of land tax for areas under cultivation used for the production of agricultural products and for natural grassland shall be 0.3 to 1.0 per cent of the assessed value of the land annually.

Recipients of old-age or disability pensions whose right to use of land was created before July 1, 1993 may be exempted from the obligation to pay land tax until December 31, 2000 up to 0.1 hectares in cities and 1.0 hectare in rural municipalities on the condition that the applicant for the tax exemption does not receive rent on the basis of the right of use of land. One user of land may be exempted from up to 200 EEK of tax per year.

Tax Rates

26. Land tax rate is 0.5-2.0 percent of taxable value. Tax on land where economic activity is restricted by law is charged either at 25, 50, or 75 percent of the tax rate. Taxes are paid 3 times a year on 15th of May, August, and November.

Tax Allocation

27. The tax accrues 100 percent to local budgets of the primary level local authority. The tax is administered by the National Tax Board.

Gambling Tax

(Law on Gambling Tax, effective November 1, 1992; amendments effective February 1, 1996)

Coverage

28. Tax is levied on gambling business operators. Income from operating games of skill, totalizator, betting, and lotteries. Gambling boards and machines used for games of chance located on licensed premises.

Tax Base

29. Total staked less than total winnings paid out. Tax is paid by authorized operators. Tax period is on month for lotteries, and games of chance or skill. For totalizator, period is the betting period (which must be within the same financial year). Tax declaration (even if no taxable income) and tax settlement are due by 15th day of calendar month following tax period.

Tax Rate

30. For games of chance rate is EEK 3,000 per gambling machine and EEK 10,000 per gambling board. For operating betting rate is 30 percent; for totalizator rate is 5 percent; for games of skill rate is 18 percent; and for lotteries rate is 16 percent.

Tax Allocation

31. For operating games of chance, skill, betting and totalizer, five percent of tax is transferred to relevant local budget where gambling premises located. Of the revenues accruing to the state budget from these same activities, 30 percent accrues to the Fund of Estonian National Culture, and 7 percent to the Estonian Red Cross, by the 25th of the month after collection. The remaining 63 percent is used to support programs directly assisting children, families, the elderly and disabled persons. Revenue from lotteries accrue to the state budget and for targeted use (mainly cultural and communal subsidies). Revenue from lotteries operated to finance specific programs or events shall be used only for those purposes. The tax is administered by the National Tax Board.

Excise Taxes

Tobacco

(Law on Tobacco Excise Tax, effective January 1, 1995)

Coverage

32. Tobacco products (smoking tobacco, cigarettes, Russian cigarettes, cigars, cigarillos, snuff, chewing tobacco, other unspecified tobacco products) manufactured in Estonia or imported into Estonia are subject to the excise tax.

33. Distribution of tobacco products without tax revenue stamps is prohibited. The sale of tobacco products by piece (except cigars), unpacked or out of an open consumer package is forbidden.

34. Revenue accrues into the state budget: 3.5 percent of the receipts are transferred to the Estonian Cultural Endowment Fund; of this, 0.5 percent goes to the physical culture and sports foundation. Tax is paid by the Estonian manufacturer or the importer. Excise tax is paid upon purchase of tax revenue stamps, the price of which constitutes the excise tax rate. Enterprises licensed to produce, import, or export tobacco products have the right to purchase tax stamps. Excise tax paid is refunded to the purchaser of the stamp upon return of a ruined revenue stamp or in case the tax stamp is destroyed in the presence of a representative of the Tax Board.

35. Excise tax is not charged on tobacco products that are exported; or that are brought into Estonia by traveler under tax free amount prescribed in customs regulations; or in limited amount of tobacco products displayed at exhibitions, fairs and shows.

36. The Ministry of Finance prescribes the order of issuing, using, returning and paying for tax stamps. The tax is administered by the National Tax Board and the Customs Board. Rates are:

Excise Tax Rates For Tobacco Products
Taxable ProductExcise tax rate in kroonsTax unit
1. Cigarettes5.51-20 cigarettes in a pack
2. Russian cigarettes5.51-20 cigarettes in a pack
3. Cigarillos5.51-20 cigarillos in a pack
4. Cigars5.01 cigar
5. Smoking tobacco7.01-50 grams in a pack
6. Snuff7.01-50 grams in a pack
7. Chewing tobacco7.01-50 grams in a pack
8. Other tobacco products7.01-50 grams in a pack

Alcohol

(Law on Alcohol Excise Tax, effective April 1, 1992)

Coverage

37. Excise tax is imposed on wine, beer, fermented drinks, spirits, and other alcoholic beverages produced in Estonia or imported into Estonia. Tax accrues to the state budget; 3.5 percent of the receipts are transferred to the Estonian Cultural Endowment Fund.

38. Tax is paid by the Estonian producer or by the importer of alcohol. Excise tax is not charged on alcohol, that are exported or that are used in the context of diplomatic relation or in limited amount of alcohol displayed at exhibitions, fairs or shows.

Rates are:

Taxable productExcise tax rate in EEK
1. Sparkling wines and other wines of fresh grapes with an alcoholic content by volume up to 15 % vol (November 18, 1998; in effect as of December 1, 1998, State Gazette I 1998, 103, 1700)10.40*
2. Sparkling wines and other wines of fresh grapes with an alcoholic content by volume exceeding 15 % vol (November 18, 1998; in effect as of December 1,1998, State Gazette I 1998, 103, 1700)15.60*
3. Other fermented drinks (e.g. cider, berry wine etc.) and their blends:4.90*
with an alcoholic content by volume up to 15 % vol
with an alcoholic content by volume exceeding 15 %vol6.50*
4. Beer0.55**
(November 18, 1998; in effect as of April 1, 1999, State Gazette I 1998, 103, 1700)
5. Other alcohol1.45**
(November 18, 1998; in effect as of December 1, 1998, State Gazette I 1998, 103, 1700)
6. Rectified spirits, to be used for medical, pharmaceutical, veterinary, research and study purposes, and for the production of perfumery0.20*

per liter.

per one %vol. of absolute alcohol in a liter.

per liter.

per one %vol. of absolute alcohol in a liter.

Fuel

(Fuel Excise Duty Act, effective July 1, 1993)

39. Excise tax is imposed on motor vehicle petrol (EEK 3,500 per 1,000 liters), diesel fuel (EEK 3.04 per kilogram), aviation kerosene (EEK 3.87 per kilogram), aviation gasoline (EEK 1.5 per kilogram), liquid gas used as motor fuel (EEK 1.5 per kilogram), compressed gas used as motor fuel (EEK 1.3 per kilogram), light fuel oil (EEK 0,30 per kilogram), lubricated motor oil (EEK 0.49 per kilogram) and diesel oil for specific purposes, for using in agriculture and fishery (EEK 0.5 per kilogram) imported into Estonia or manufactured in Estonia.

40. Excise duty is imposed on motor fuel, lubricated motor oil and fuel oil, except for liquefied gas and compressed gas used as motor fuel, upon the declaration of motor fuel, lubricated oil or fuel oil for import free circulation immediately after the entry thereof into the Estonian customs territory or after prior completion of a customs procedure. Excise duty is imposed on motor fuel, lubricated motor oil and fuel oil manufactured in Estonia, and imported liquefied and compressed gas used as motor fuel, upon the sale or self-consumption thereof.

41. Excise tax is refunded from the state budget to foreign missions consular posts, and to representations of international organizations and international co-operation programs having equal status therewith, and to persons with diplomatic status.

42. Excise tax accrues to the state budget. The tax on domestic goods and on imported liquid and compressed gas used as motor fuel is administered by the National Tax Board. The Customs Board administers the tax on imported motor fuel, lubricated motor oil and fuel oil, except liquid and compressed gas used as motor fuel.

Packaging

43. Packages filled in Estonia and imported into Estonia are subject to the excise tax.

44. Fifty percent of the excise tax receipts accrue to the state budget, and 50 percent to the Environment Fund.

45. The tax is paid by the importer of packages or by the user of packages, i.e. who fills packages with goods.

46. Excise tax exemptions are similar to those for other excisable goods, and in addition, the excise tax is not charged on packages of which at least 40 percent is recovered until December 31, 1998 and on packages of which at least 60 percent is recovered as of January 1, 1998.

47. The National Tax Board administers the tax on domestic packages, and the Customs Board administers the tax on imported packages.

Taxable packagingExcise tax rate in EEK 1/
Alcohol packagingPer packagingPer liter
Glass and ceramics0.502
Plastic1.002
Metal0.752
Other0.251
Nonalcoholic beverages packaging
Glass and ceramics0.502
Plastic1.002
Metal0.752
Other0.251

Excise tax shall be computed for both rates and added up.

Excise tax shall be computed for both rates and added up.

Motor vehicles

(effective April 1, 1995)

48. From April 1, 1995 the customs duty on automobiles, snowmobiles and motorcycles was replaced with a motor vehicle excise tax, determined by engine capacity and age of vehicle. The excise tax computed on the basis of the two rates, and added together for taxation purposes. Excise tax on imported motor vehicles is paid by the importer, excise tax on motor vehicles manufactured in Estonia is paid by the manufacturer.

49. The excise tax is not charged:

on motor vehicles manufactured in Estonia exported by the manufacturer; on motor vehicles imported by representations of foreign diplomatic and consular missions, representations of international organizations and international programs of cooperation, enjoying a similar status with the former, as well as by natural persons enjoying diplomatic status, for use in the exercise of their official functions; motor vehicles constructed or adapted for use by the disabled or for the transportation of the disabled; motor vehicles over 25 years.

1. Excise tax based on the cylinder capacity of motor vehicles
Description of the Motor VehicleTax rate
Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading No. 8702), including vans with several seats and racing cars:
Motor vehicles specially designed for travelling on snow10 EEK/cm3
Golf cars and similar vehicles15 EEK/cm3
Other vehicles, with spark-ignition internal combustion reciprocating piston engine:
Of a cylinder capacity not exceeding 1,600 cm32 EEK/cm3
Of a cylinder capacity exceeding 1,600 cm3 but not exceeding 2,500 cm33,200 EEK+5 EEK per each cm3 of cylinder capacity, which exceeds 1,600cm3
Of a cylinder capacity exceeding 2,500 cm3 but not Exceeding 3,000 cm37,700 EEK+15 EEK per each cm3 of cylinder capacity, which exceeds 2,500 cm3
Of a cylinder capacity exceeding 3,000 cm315,200 EK+15 EEK per each cm3 of cylinder capacity, which exceeds 3,000 cm3
Other vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel):
Of a cylinder capacity not exceeding 1,500 cm32 EEK/cm3
Of a cylinder capacity exceeding 1,500 cm3 but not exceeding 2,500cm33,000 EEK+5 EEK per each cm3 of cylinder capacity, which exceeds 1,500 cm3
Of a cylinder capacity exceeding 2,500 cm38,000 EEK+15 EEK per each cm3 of cylinder capacity, which exceeds 2,500cm3
Motorcycles, with or without side-cars; side-cars (except those specified in subheading 8711 10 and 8711 90)2.5 EEK/cm3
2. Excise tax based on the age of the motor vehicle
EEK/year
Used motor vehicle of 1-5 years of age200
Used motor vehicle of 6-10 years of age300
Used motor vehicle over 10 years of age500
In the calculation of excise tax on motorcycles (motor vehicles of the heading 8711 of NEG -motorcycles, with or without side-cars (except those specified in subheading 8711 10 and 8711 90)) the age of the motorcycle is multiplied by the coefficient 0.5.
Note:
The age of the motor vehicle is determined on the basis of the following example:
The year of charging excise tax:1999
The year of manufacturing the motor vehicle1994
Age of the motor vehicle5 years

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