Investor Presentaiton slide image

Investor Presentaiton

Very low and highly affordable debt burden Estonia compares very favorably with peers on nearly every relevant debt ratio • Estonia's debt to GDP level remained the lowest in the EU area at 18.5% of GDP in 2022, despite the exceptional financing needs associated with the Covid-19 pandemic and the war in Ukraine¹ • During the Covid-19 pandemic, general government debt increased from 8.5% of GDP in 2019 to 18.6% in 2020¹ General government debt metrics in 2022 (% of GDP) 120 100 • The 2024 State Budget introduced various revenue austerity measures to decrease the deficit, which are expected to result in a mild general government debt increase to 20.9% of GDP by end-2024 and 80 60 40 • Estonia's debt burden compares even more favorably on a net basis, with the MoF's financial reserves at 11.1% of GDP at end-20222 • In September 2023, general government debt was EUR 6.8bn, of which the largest share (71%) was obligations of the Ministry of Finance (EUR 4.9bn). 1,2 Government guarantees in favor of EFSF (EUR 482m) are also considered part of general government debt Interest expense to revenues (%)³ 18.5 20 4.0 0 Estonia Lithuania Latvia Czech Rep. 111 Ireland Slovakia Slovenia Finland Euro area Gross debt Net debt Source: Statistics Estonia, Eurostat, IMF Fiscal Monitor October 2023 Composition of the general government debt in 2023 (EURm)4 5 4 3.04 2.78 3 2.11 1.91 1.62 2 1 0.66 3.68 3.58 2.93 2.72 0 Estonia Finland Lithuania Latvia Czech Slovakia Slovenia Ireland Rep. AA Sov. A Sov. median median ■ 2022 ■ 2023 ■2024 2025 ♦2022-25 average Local governments 1,088 (2.8%) Other 677 (1.7%) State guarantee in favour of EFSF 437 (1.1%) 25 Source: Fitch Sovereign Data Comparator December 2023 Source: Statistics Estonia, MoF Forecasts (State Budget 2024) Note: (1) Statistics Estonia; (2) Ministry of Finance of Estonia; (3) 2024/2025 Fitch data are projections only; (4) % are reflecting debt as a percentage of GDP Ministry of Finance 5,322 (13.7%) 酥酥酥 REPUBLIC OF ESTONIA MINISTRY OF FINANCE
View entire presentation