The Supervisory Board of thecental bank discussed the profit distribution

At the regular meeting of the Supervisory Board of Eesti Pank on Tuesday, the board confirmed the current strategy for profit distribution, whereby the central bank gives the state between 0 and 25% of its profit from the previous year.

The Supervisory Board will start to discuss the distribution of Eesti Pank’s profit for 2014 at the next meeting on 28 April.

The Supervisory Board decided that the relative level of Eesti Pank’s capital should increase to the average level of the central banks of the euro area, as the balance of risks to the capital of the Eurosystem as a whole is considered when joint monetary policy decisions are made. This means it is necessary to raise the level of capital by about a billion euros to 1.3 billion.

The ratio of Eesti Pank’s increased capital to the risk assets used for monetary policy is one of the lowest of any of the central banks of the euro area.

Since 1992 Eesti Pank has allocated a total of 129 million euros to the state budget.

Source: Bank of Estonia

General government balance back in surplus

According to the preliminary data of Statistics Estonia, in 2014, the Estonian general government surplus was 0.6% and the gross debt level was 10.6% of the gross domestic product.

At the end of 2014, the total revenues of the general government exceeded the expenditures by 112.7 million euros*, accounted as the Maastricht deficit criteria. Both the balance of the central government and those of local governments improved. By the end of 2014, the surplus of revenues of the central government sub-sector was 55 million euros*. The deficit of the local government sector decreased over the year, amounting to a deficit of only 4.5 million euros at the end of 2014. The budget surplus of social security funds was 62.2 million euros, remaining on the same level as in 2013.

The consolidated debt of the general government (Maastricht debt) amounted to 2.1 billion euros by the end of 2014, having risen 10% compared to 2013. The local governments as well as the central government contributed to the growth of the debt level. The loan liabilities of the central government rose by 11%, while the volume of long-term securities issued by the public-legal institutions and foundations belonging to the central government decreased by 28%. The share of foreign debt in the central government’s loan liabilities was nearly 84%.

The Estonian involvement in the European temporary rescue mechanism, EFSF (European Financial Stability Facility) increased by 26.4 million euros in 2014. At the end of 2014, the liabilities towards the EFSF totalled 485 million euros, 81% of which went for the participation in the rescue package for Greece, 12% for Portugal and 8% for Ireland.

The overall debt level of the local governments grew by 12% compared to 2013 and nearly a quarter of the loans were financed by foreign capital. While the volume of long-term loans increased 13% over the year, the volume of short-term loans decreased nearly three times. The volume of the securities other than shares increased 8%. As at the end of 2014, social security funds did not contribute to the debt of the general government sector.Diagram: Surplus/deficit and debt level of the general government in Estonia

* Unlike earlier years, the results of the economic activities of central stockholding agencies and deposit guarantee funds are now added as estimations to the central government balance according to Eurostat’s decisions on accounting harmonisation. The corresponding recalculations will be published in the Statistical Database of Statistics Estonia together with the results of regular revisions in September 2015.

In Estonia the general government sector comprises three sub-sectors: 1) central government (state budget units and extra-budgetary funds, foundations, legal persons in public law); 2) local governments (city and rural municipality governments with their subsidiary units, foundations); 3) social security funds (Estonian Health Insurance Fund, Estonian Unemployment Insurance Fund).

Source: Statistics Estonia

The carriage of passengers and goods declined in 2014

According to Statistics Estonia, in 2014, the number of passengers served by Estonian transport enterprises decreased by 2% and the freight volume in tonnes decreased by 5% compared to the previous year. Passenger traffic volume increased by 6% in passenger-kilometres, but freight turnover fell 15% in tonne-kilometres.

In 2014, the number of passengers carried by Estonian transport enterprises amounted to 211 million. 92.7% of these passengers were carried by road, 4.1% by sea, 2.8% by rail and 0.4% by air.

3% fewer passengers used road transport, compared to 2013. There were 195.6 million passengers in total and 85% of them, i.e. about 167 million passengers, used urban transport (i.e. buses, trams and trolleybuses). The number of passengers using county lines was about 17 million (up by 2% compared to 2013). National non-scheduled transport was used by 5 million passengers (up by one third). The number of passengers was 4.4 million on domestic highway lines (down by 2%) and 808,700 on international lines (up by 10%). In 2014, the passenger traffic volume of road transport enterprises decreased by 2% and was 2.6 billion passenger-kilometres.

In 2014, Estonian sea transport enterprises carried 8.7 million passengers, which is 1% less than in 2013. The number of passengers carried was 2.2 million in domestic sea traffic (up by 4%) and 6.5 million in international sea traffic (down by 3%). The passenger traffic volume of sea transport enterprises decreased by 4% and was nearly 1.2 billion passenger-kilometres in 2014.

Last year, with the arrival of new trains, the number of passengers using rail transport increased significantly. Around 5.9 million passengers were carried by rail, which is 41% more than in 2013. 5.8 million passengers were carried in domestic rail traffic (up by 43%) and 97,100 passengers were carried in international rail traffic (down by a fifth compared to 2013). The passenger traffic volume of rail transport enterprises increased by 26% and was 281.7 million passenger-kilometres.

In 2014, Estonian air transport enterprises carried 771,300 passengers. This is 1% more than in 2013. 17,800 passengers were carried in domestic air traffic (down by 7%) and 753,500 passengers were carried in international air traffic (up by 2%). The passenger traffic volume of air transport enterprises increased by 29% and was 1.4 billion passenger-kilometres in 2014. Scheduled passenger air transport decreased, but the increase in passenger turnover was due to the growth in charter flights.

In 2014, 75.1 million tonnes of goods were carried by Estonian transport enterprises, of which nearly 50% was carried by road, 48% by rail and 2% by sea.

Despite the overall decrease in goods transport volumes, road transport companies carried nearly 37.2 million tonnes of goods in 2014, which is 12% more than in 2013. 23.6 million tonnes of goods were transported in domestic road traffic and 13.6 million tonnes in international traffic. Freight turnover increased by 7% compared to 2013 and totalled 6.9 billion tonne-kilometres. There was a growth both in domestic transport and in international transport.

In 2014, the amount of goods carried by rail was nearly a fifth smaller than the year before, amounting to 36.3 million tonnes. The year-over-year decrease in freight volume in 2014 was the largest since 2007 and 2008. 20.1 million tonnes of goods were transported in domestic rail traffic and 16.2 million tonnes in international traffic. Freight turnover decreased by a third compared to 2013 and amounted to 3.3 billion tonne-kilometres.

Estonian sea transport enterprises carried 1.6 million tonnes of goods in 2014, which is 17% less than in 2013. The freight turnover in sea transport decreased by more than a half compared to 2013 and amounted to 425 million tonne-kilometres.

Estonian air transport enterprises carried 3,000 tonnes of cargo and the freight turnover was 1.8 million tonne-kilometres in 2014. Compared to 2013, there was 50% more cargo transported and freight turnover increased by 19%. Among the cargo transported by air, the carriage of postal shipments increased.

Carriage of passengers and goods

by transport enterprises, 2014

Passengers, millions Passenger traffic volume, billion pkm Freight, million tonnes Freight turnover, billion tkm
Total 211.0 5.5 75.1 10.6
Road transport 195.6 2.6 37.2 6.9
..urban transport 167.0 0.8
Rail transport 5.9 0.3 36.3 3.3
Sea transport 8.7 1.2 1.6 0.4
Air transport 0.8 1.4 0 0

– magnitude nilThe data of Estonian transport enterprises are collected and published according to the enterprise’s principal activity. The enterprise’s principal activity is determined based on the Estonian Classification of Economic Activities (EMTAK (NACE)): land transport (rail and road), water transport and air transport.

Passenger traffic volume is the volume of work done in the transport of passengers. It is measured in passenger-kilometres (pkm). One passenger-kilometre is the transport of one person across a distance of one kilometre.

Freight turnover is the volume of work done in the transport of goods. It is measured in tonne-kilometres (tkm). One tonne-kilometre is the transport of one tonne of goods across a distance of one kilometre.

 

Source: Statistics Estonia