Recognising there is strength in numbers, Estonia, Latvia and Lithuania are joining together to created a pan-Baltic capital market, with covered bonds the first product planned. Michael Turner reports.

Private equity investment in central and eastern Europe could be set to increase as investors look to capture the region’s potential as its economies return to growth. 

Central and eastern European banks in the EU faced a sluggish 2013, but Poland led the region in terms of growth and the Czech Republic in terms of returns. Baltic banks are also starting to rise to the challenge.

Lithuania became the 19th country to adopt the euro as its currency in January, joining Baltic neighbours Latvia and Estonia. But what benefits can the country expect to see from this move?

After a deep recession and housing bust in 2008 and a number of subsequent corporate governance crises, Lithuanian banks are finally returning to a steady footing, helped in no small measure by the presence of risk-averse Scandinavian lenders in the country.

The eurozone's troubles of the past few years have meant that the headlines have been dominated by those countries deemed likely to leave the currency union. However, there are EU members that still wish to sign up to euro membership. The question is, why?

Lithuania's president, Dalia Grybauskaite, tells The Banker of the importance for governments to balance their books, her prediction on the future of the euro and her country's commitment to common, coordinated governance with its partners and neighbours.