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BNS - The Estonian kroon is not faced with a threat of devaluation, the EU's Economic and Monetary Affairs Commissioner Joaquin Almunia told the Estonian daily Eesti Paevaleht in an interview.
Commenting on the prospect that the national currencies of the Baltic states could be devalued, Almunia cautioned that the situation had to be looked at one country at a time.
"I'm not concerned about Estonia. That's provided that the government will continue applying measures," the commissioner was quoted as saying in the interview published in the Saturday edition of Eesti Paevaleht in Estonian.
He described the currency peg that is part of the currency board system as a positive element.
"It ensures that the currency is stable even under the conditions of very volatile markets. Countries that use a floating rate have more reason to be worried than you," Almunia said.
Almunia said the EU was well equipped to bring down risks and solve problems. As an example, he cited the loan packages held out to Latvia and Hungary together with the IMF.
"I'm not ruling out that some other member state too could need similar financial aid in the future, but I don't believe that this applies to Estonia. I think the position of Estonia is much better and healthier. The question rather is about how to lay the basis for renewed economic growth in the difficult situation and attract investments again," the commissioner said.
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