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 FINANCEView entire presentation