Companies are timing tax debt

During the crisis when banks are wary of giving loans, the company managers have found a new mean in the Tax and Customs Board (MTA) to increase liquidity, Äripäev reports.

Since the beginning of the year the MTA has signed debt timing agreements in amount of EEK 100 mln and the amount of timed debts has passed EEK 250,000 limit.

The interest of timed tax debt is competing successfully with banks and might be 15 pct together with income tax.

“The option to time debts is a favour by the state, but it certainly isn’t debt,” Kerly Lillemets, the head of MTA’s collection unit said.

But she also said that the number of timed debts has increased by 70 pct and 1600 companies have scheduled their payments.

Read further: BBN- Estonian companies have found new way to increase liquidity – timing tax debt

IMF published their opinion on devaluation

IMF’s recently published analyses aren’t that pink, there are many stannous, not to say black tones, Eesti Ekspress writes.

IMF suggests to prepare for the worst or what happens if Scandinavian banks don’t support their subsidies in Estonia anymore.

IMF has calculated what happens if Estonia devalues their EEK by 30 pct. In that case euro would cost more than EEK 20 instead of EEK 15.6 and banks’ capital adequacy would decrease from 15 pct to 5 pct. Up to 10 pct of loans may go bad.

According to that document Hansapank barely ecaped doom in the autumn. 15 pct of depositors escaped Hansapank in autumn, while Swedish press published negative articles about Swedbank and depositors in Sweden left Swedbank as well.

The whole Estonia’s banking system was in threat according to the document.

Source: BBN