CIVITTA Annual Review 2018 | Page 27

ESTONIAN CAPITAL MARKET DIAGNOSTICS Industry: Financing CIVITTA team: Estonia stonian macroeconomic environment has developed fast and successfully for more than 20 years. Private and public sectors are open to changes, they had supported innovative approaches, utilized solutions offered by new technologies and improved the overall user experience in most sectors. Despite these favorable conditions, Estonian capital markets have remained inactive and illiquid, mainly due to issues related to limited demand and supply. In order to tackle this situation, the Ministry of Finance of Estonia and the EBRD implemented a capital market diagnostic study with CIVITTA Estonia selected to carry out the work. recommendations on how to fix them. During the diagnostic, CIVITTA team conducted interviews and workshops with the Estonian capital market specialists, executed research on capital market ecosystems, secondary data, market statistics, and performed legal and regulatory framework analysis. The CIVITTA team successfully identified market gaps and proposed recommendations. As a result of the diagnostics, financing options were mapped and compared by growth phases of a company. The scope of the project was to identify market gaps, find alternative solutions via international benchmarking and generate 27