Estonia has previously eclipsed the other two Baltic states as a destination for inward investment, but all three are now aiming to move up the value chain by enhancing local skills to bring in top technology and service companies, reports Tom Blass.

Without an injection of millions of euros from the international banking community, Parex Bank would have gone under last November. But just six months on, Robert Anderson reports on Latvia's second largest bank's slow, but steady recovery.

A fall in the exchange rate has caused problems for borrowers in foreign currency. But moderate loan-to-value ratios and high levels of capital should see the banks through. Writer Nick Kochan

Few markets in central and eastern Europe have escaped investor fears over excessive corporate debt. Equity offerings are on hold and refinancing conditions have rarely been tougher, but there are opportunities for banks that stay in the game, writes Philip Alexander.

The banking sector across emerging Europe is varied, and although even its most dynamic economies are being impeded by the slowdown, forecasts suggest they have the growth potential to bounce back, reports UniCredit Group's global economics, fixed income and foreign exchange research team.

Intesa Sanpaolo rose to prominence as Italy's largest bank after a series of domestic mergers and takeovers, and has improved its status further with a raft of selective acquisitions in central and eastern Europe, writes David Lane in Rome.

The share prices of leading Italian banks were buffeted in early 2009 as investors anticipated damage to asset quality from their high exposure to emerging Europe. But senior managers say the region is still at the heart of their strategy, writes Philip Alexander.

The global recession is nothing new to Turkey's bankers, who have learnt the lessons of the country's economic crisis of 2001 and are showing great resilience as their global peers falter. Writer Metin Demirsar

The full force of the global recession has hit Turkey with falls in exports leading to job cuts. Bankers say an IMF deal would help but the government is reluctant. Writer Metin Demirsar
Recep Tayyip Erdogan, prime minister of Turkey