Bank of Estonia: Companies on Better Footing in Q2
The fiscal situation of the nation's non-financial companies improved in the second quarter of the year, according to the Bank of Estonia, with debts decreasing by 50 million euros and deposits rising by 92 million euros.
The companies were given a helpful boost by a growth in foreign deposits, but they also made gains in the foreign debts arena, where the amount of repayment surpassed the amount of borrowing for the first time since the third quarter of 2010.
The companies' domestic borrowing, on the other hand, saw an increase, but their overall domestic debt is still 5 percent lower than it was a year ago.
By contrast, their foreign debt is 6 percent higher, and now accounts for a 26 percent share of the companies' overall debt.
Households also saw a growth in their deposits over the quarter - by about 200 million euros. Their debt level remained about the same, but has dropped 8.2 percent since its peak at the end of 2008.
Steve Roman