The Baltic states of Estonia, Latvia and Lithuania are joining forces to create a joint capital market. The pan-Baltic project will not only boost the countries’ financial market capabilities but also support its banks by allowing them to sell covered bonds secured by mortgages from across the three countries – something that is currently not possible.
On November 6, the ministers of finance for Estonia, Latvia and Lithuania – with technical assistance from the European Commission and the European Bank of Reconstruction and Development (EBRD) – signed a memorandum of understanding (MoU) to begin work on the legal framework needed to create a pan-Baltic capital market, paving the way for future opportunities.