European Central Bank leaves base interest rates unchangedEconomy
- Future government plans wide-ranging tax reformEconomyThe new government plans to introduce an €315 million investment program, privatize, either in part or in full, four state-owned companies, lay down a banking tax, abolish income tax incentives on loan interests etc. Grand redistribution of taxes is also in the pipeline that will see minimum income exempt from tax raised from the current 170 euros a month to 500 euros from 2018.
- Banks suffer initial setbacksEconomyFor quite some time, banks have been bemoaning the record-low interest rates. By now, these have begun to show. Yesterday, packaged with last year financial results, Danske Bank in Estonia announced closure of half its branches and lay-off of near 80 of staff – 17 percent of people on payroll. The bank’s profits fell by more than a half to €22.7m.
- ECB acts decisive in deflation threatEconomyEven before stepping into office, European Central Bank president Mario Draghi was nicknamed Super Mario. Now, nearly three years into his term, the ECB council under his leadership has managed to act decisive on several occasions. For starters, two years ago, eurozone was saved from breaking apart, or, at least, from a very bad crisis. Now, the central bank is set to do battle for boosting economy and defeating deflation.
- Eesti Pank: Corporate borrowers are behind the growth in the loan and lease portfolioEconomyThe portfolio of loans and leases to Estonian companies and households was 2% larger than it had been a year earlier, standing at 14.7 billion euros at the end of January 2013. Loans and leases to the real sector continued to grow as the need of companies for financing increased and corporate borrowing ability has increased.