MP: state should not support exporting to Russia

Kalev Lillo, MP for Reform Party caused an uproar among businessmen last week when he said that the Estonian state should not support exporters who trade with Russia, writes Äripäev.

Lillo who is also member of the supervisory board of state-owned Port of Tallinn wrote in an opinion column published in Delfi last week that Estonia should be wary despite of Russia becoming a WTO member and being now Estonia’s second-largest export partner.

„We should not use taxpayer money for increasing economic security risks,” wrote Lillo.

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Developer seeks 700 MEUR to complete luxury resort

Margus Reinsalu who is developing a luxury resort estate on the Ilha de Cajaiba island off the Brazilian coast is now the sole owner of the development company Property Logic Brazil.

Reinsalu himself does not wish to comment why his former business partners, a Dutch businessman Joob Huisman and an Irishman Sean Cusack, decided to quit the project and only says that they exited as previously agreed.

Reinsalu remains optimistic about the chances to complete the billion-dollar-project and says that while the whole of Europe talks about the debt crisis, life in Brazil is a peach.

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Lending review of the Bank of Estonia

In the second half of 2011, the deepening of the debt crisis in the euro area started to have an impact on bank lending to the European private sector too.Growth in loans slowed down in the euro area in the second half-year, driven by both demand and supply. 

While the non-financial sector was not ready to make new loan commitments in the context of an unstable economic climate and heavy debt burdens, the banks have at the same time reduced their offers of loans due to their strained financing.

Finland and Sweden – our closest neighbours – have so far succeeded in differentiating themselves in a positive manner from the general trends in the euro area, but even their loan markets showed signs of a slowdown.

The financial results of the Estonian companies have significantly improved in 2011 following the swift recovery in economic activity and primarily due to strong external demand.The turnover of non-finan­cial sector companies has increased and companies have stepped up their take-up of short-term loans, especially overdrafts, in order to finance their evolving stock.

Parent banks from Nordic countries have so far remained outside the epicentre of the euro area debt crisis and there have been no major problems with funding.However, due to their continuously high share of wholesale funding, parent banks are still vulnerable to adverse developments in the financial markets.

Growth in credit stock is usually coupled with economic growth.10 The recession in the Estonian economy turned into growth in 2010.In contrast to traditional patterns, however, the growth was not accompanied by a recovery in credit volumes.The credit stock has been decreasing since the end of 2009 in all major customer groups, for both companies and households.This is not a very common situation in international terms, but neither is it unheard of.It is normal in developed countries that every fifth or sixth recovery from economic recession is creditless.This occurs even more frequently in developing countries, where every fifth recovery is credit­less. 

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Estonian Air broke the internet sales record

In December Estonian Air’s internet sales grew 69% compared to last year. The total number of ticket sales increased 16% in 2011.

In autumn 2011, Estonian Air renewed its internet page, which makes the booking faster and more convenient, and which attracts more and more visitors also from outside Estonia (Russia, Sweden, Norway, Finland).

„Last autumn we renewed our website to make it more customer friendly, which has led to an impressive increase of the amount of visitors in the last quarter of 2011. There is remarkable growth in the amount of visits to our homepage from foreign countries as a result of marketing activities in internet, location-based advertising, content optimization and better usability – Russia and the Scandinavian countries are positive examples,“ said Rauno Parras, Chief Commercial Officer of Estonian Air.

„We have changed also the pricing concept and added new products ECO and LIGHT. The growing share of business travellers is probably related to the fact that we have added frequencies, which in turn has made our flight schedule appropriate for business travellers. And more news is coming.“

In addition, Estonian Air introduced new product ECO that offers very attractive fares and becomes more and more popular. ECO gives extra advantage for customers who purchase their tickets well in advance. Ticket prices start from 49 euros, all taxes and all traditional services are also included: free baggage allowance (max 23 kg), hand luggage (max 8 kg) and complimentary on-board service.

In order to improve product for both business and leisure travellers, Estonian Air has increased flight frequencies on many routes (Copenhagen, Brussels, Amsterdam, Oslo, Moscow, St Petersburg, etc).

More info on new destinations (Tbilisi, Venice, Vienna) can be found at

Source: Estonian Air