Sampo Bank Chairman: No Recession Yet
Defying the boo-birds, chairman of the board of the number four bank in Estonia says double-dip recession is not yet threatening Estonia.
Aivar Rehe of Sampo Bank – part of the Danske Bank Group – said the third quarter economic growth was a "positive surprise, especially compared to other Eurozone countries."
"The recession has not yet arrived here," said Rehe in Postimees. "Estonian export is under pressure as the countries that give us subcontracting work are experiencing corrections due to world market conditions."
He also said demand for credit is low, keeping the gears of the economy from seizing up. "Companies and individuals are more cautious. Deposits are seeing record growth. Investment decisions are being postponed .Prudence is a smart behavioral trait," said Rehe, running down the current situation.
Rehe pointed to the the more stringent requirements leveled at Nordic banks, something pointed up by Standard & Poor's as well as in their banking sector credit risk assessments.
"The negative experience of 2008–2009 has taught a lesson," said Rehe.
Rehe warned that Estonian exporters should do what they can to protect their markets as there is the risk that the governments in those countries would favor protectionism.