Fitch Ratings that just started a mission to Latvia warns that although the Baltics are not directly exposed to eurozone banks, they are not immune to possible financing problems that could possibly be caused by a debt crisis in EMU. Fitch notes that Nordic banks that control Latvian, Lithuanian and Estonian markets have good capitalization and are not under as much pressure as credit institutions belonging to eurzone. However, their dependency on the financing of large clients makes them vulnerable against higher costs of capital on international markets. Fitch thus believes that there is a risk that banks these banks could cut financing to subsidiaries in CEE. At the same time agency notes that financing is not likely to be cut below the liquidity positions of the subsidiary banks. Fitch's report also forecasts that eurozone's banks will strive to retain strong presence in CEE due to high growth potential and profitability higher that in eurozone. |
Estonian national airline Estonian Air recorded net loss of EUR 49.2mn in 2012, up from net loss of EUR 17.3mn in 2011. Operating loss amounted to EUR 35.8mn in 2012. Revenues of the company ... more
Lithuanian flour manufacturer Malsena announced that it has acquired Latvian flour manufacturer Rigas Dzirnavieks. The company indicates that with the acquisition it will become the largest flour ... more
Estonian national airline Estonian Air announced that it agreed to pay penalties for returning two excess Embraer E190 aircrafts to the manufacturer. The company has started restructuring and ... more