Front Matter

Front Matter

Author(s):
Françoise Le Gall, L. Psalida, Pietro Garibaldi, Julian Berengaut, Jerald Schiff, Kerstin Westin, Augusto López-Claros, Richard Stern, and Dennis Jones
Published Date:
November 1998
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© 1998 International Monetary Fund

Production: IMF Graphics Section

Figures: Sanaa Elaroussi

Typesetting: Julio R. Prego

Cataloging-in-Publication Data

The Baltic countries: from economic stabilization to EU accession / by Julian Berengaut… [et al.].—Washington, DC: International Monetary Fund, 1998

p. cm.—(Occasional paper, ISSN 0251–6365 ; no. 173)

Includes bibliographical references.

ISBN 1–55775-738–0

1. Baltic States — Economic Policy. 2. Baltic States — Economic conditions 3. Fiscal policy — Baltic States. 4. Monetary policy — Baltic States 5. Structural adjustment (Economic policy) — Baltic States. 6. Economic stabilization — Baltic States. 7. Foreign exchange — Baltic States. I. Berengaut, Julian, 1950. II. International Monetary Fund. III. Series: Occasional paper (International Monetary Fund) ; no. 173. HG243.B2 1998

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Contents

The following symbols have been used throughout this paper:

  • … to indicate that data are not available;

  • n.a. to indicate not applicable;

  • — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;

  • – between years or months (e.g., 1994–95 or January–June) to indicate the years or months covered, including the beginning and ending years or months;

  • / between years (e.g., 1994/95) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.

Preface

This occasional paper provides an overview of economic developments and major policy challenges in the Baltic countries since 1994–95, focusing on the period 1995–97. During that time, the Baltic countries moved beyond the first stage of transition, which had emphasized financial stabilization and the revival of economic growth. In the second stage, the Baltic countries had to address policy challenges stemming from the choice of exchange rate regime, fiscal management, development and supervision of their financial systems, strengthening the private sector, and preparing their economies for integration with the European Union. The contributions to this paper relied in large part on the work that was undertaken by the staff of the Baltic Division of the European II Department in the context of discussions with the authorities on use of IMF resources and Article IV consultations.

The study was a collaborative project directed by Julian Berengaut with assistance from Augusto Lopez-Claros and Odd Per Brekk. Helpful suggestions were received from John Odling-Smee and Thomas Wolf. In addition, the authors are indebted to Constance Strayer and Lilian Immers for secretarial assistance and to Linda Galantin and Xiaofen Chen for research assistance. Juanita Roushdy of the External Relations Department edited the report and coordinated its production for publication.

The opinions expressed are solely those of the authors and do not necessarily reflect the opinions of the IMF staff, Executive Directors, or the authorities of the Baltic countries.

List of Abbreviations

BFTA

Baltic Free Trade Area

BIS

Bank for International Settlements

BRO

Baltics, Russia, and other countries of the former Soviet Union

CBA

Currency board arrangement

CIS

Commonwealth of Independent States

CIT

Corporate income tax

CMEA

Council for Mutual Economic Assistance

CPI

Consumer price index

EBRD

European Bank for Reconstruction and Development

EFF

Extended Fund Facility

EFTA

European Free Trade Association

EMS

European Monetary System

EMU

European Monetary Union

ERM

Exchange rate mechanism

EU

European Union

FDI

Foreign direct investment

GATT

General Agreements on Tariffs and Trade

GDP

Gross domestic product

IAS

International Accounting Standards

ICG

Intergovernmental Conference

IMF

International Monetary Fund

MIP

Multi-Annual Indicative Program

NDA

Net domestic assets

NTB

National Tax Board

OECD

Organization for Economic Cooperation and Development

PAYG

Pay-as-you-go

PIT

Personal income tax

SDR

Special drawing right

VAT

Value-added tax

WTO

World Trade Organization

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