The relative stabilisation process that took place in the credit market can be of temporary nature, for the situation of the real economy will remain tense. As a new trend, mention should be made of the sharper than earlier increase of real interest rates while the nominal interest rates have remained relatively unchanged. Thus, economic growth in 1999 first of all depends on Estonia's capability to export to western markets, which, in turn, depends on the economic growth in the Western Europe. Inflow of foreign direct investments is one of the major sources for increasing companies' own capital. Increasing the enterprise sector capitalisation is, in turn, the main development factor since the stabilisation of the extremely rapid growth in the credit market.
Fiscal policy is considered to be one of the main indicators of a stabilised transition economy.
The final budget for 1999 was, however, drafted according to an optimistic scenario. The developments at the beginning of the current year should force the government to think about a negative supplementary budget in the nearest future. Tax burden can only be reduced through essentially cutting the present state expenditures. Taking into account the easing of fiscal policy and a still high current account deficit, Eesti Pank continuously stresses the higher than international standards requirements imposed on the banking sector, including domestic liquidity buffers. Parallel to that, the existing framework is being made 'more market-oriented'.