Baltic securities markets

Abstract

Securities markets are important for economic growth, providing a channel for savings flows from sectors of the economy with surpluses to sectors where the investment opportunities exceed current resources.This study describes the emergence and evolution of securities markets in three small transition economies: Estonia, Latvia, and Lithuania.While these markets are still in early stages of development, much of the requisite institutional and regulatory framework are already in place.The equity market has developed most rapidly in Estonia.In Latvia and Lithuania, the financing needs of the central government have prompted development of treasury-bill markets.Work on integrating the equity markets is underway, part of a general trend toward integration of the securities markets in the three Baltic states.