Foreign Financing

The Republic of Estonia has received since regaining independence foreign assistance worth of billions of euros. The Ministry of Finance is responsible for financial management of this assistance. Today, majority of the assistance is received through EU regional policy instruments, but also the Norwegian and EEA Financial Mechanisms, Estonian-Swiss Cooperation Programme and others are available.

Most of the assistance has been used for improving Estonian economy, education, infrastructure and environment.

Estonia is receiving foreign financing from following sources:

European Union Structural Assistance

(European Regional Development Fund, European Social Fund, Cohesion Fund)

Structural Assistance is allocated by the European Union to Estonia for the purpose of supporting development of the economy in Estonia, thus reducing development differences between European regions and increasing the competitiveness of the European Union as a whole in the global market. During the period of 2007-2013 Estonia can use funds in the amount of € 3.4 billion, i.e. nearly twice as much per year as in previous years.

Read more: www.strutuurifondid.ee

European territorial cooperation programmes

(INTERREG)

The European Territorial Co-operation objective is financed by the European Regional Development Fund (ERDF) and supports cross-border, transnational and interregional co-operation programmes. The budget of € 8.7 billion for this objective accounts for 2.5% of the total 2007-13 allocation for cohesion policy, including the allocation for Member States to participate in EU external border co-operation programmes.

Read more: www.interreg4c.net

Norwegian and EEA Financial Mechanisms

(EEA Grants, Norway Grants)

The purpose of the Financial Mechanisms is to contribute to the reduction of social and economic disparities in Europe, and to support the new EU member states in their efforts to participate fully in the enlarged internal market. For Norway it is also an important goal to strengthen bilateral ties with the beneficiary states. In Estonia, the Financial Mechanisms will provide a total of € 32,760,000 during the period 2004-2009 and € 44.6 million between 2009-2014.

Read more: eeagrants.fin.ee

Estonian-Swiss Cooperation Programme

Eesti-Šveitsi koostööprogrammi logo

According to the Framework Agreement most of the contribution will be directed to regional programmes which aim is to create healthier living environment in Estonia. In 2007-2012 Estonia shall be provided with 4% of the whole contribution i.e. 39,92 million Swiss francs (ca € 24 million depending on the exchange rate).

More info from the programme webpage

Agriculture, rural life and fisheries

(Euroopa Merendus- ja Kalandusfond, Euroopa Regionaalarengu Fond)

In the budgetary period of 2007-2013 Estonia can use approx. € 175 million from the funds of the European Agricultural Fund for Rural Development (EAFRD) in order to support rural life and agriculture. Estonia will be able to support the fisheries sector with the help of the European Union with nearly € 105 million.

More info: www.agri.ee,  www.pria.ee

Phare and Transition Facility programmes

(Phare, Transition Facility)

The Phare programme was one of the three pre-accession instruments financed by the European Union to assist the applicant countries of Central and Eastern Europe in their preparations for joining the European Union. The 10 new Member States that joined the EU in 2004 received a Transition Facility in 2004-2006.

Read more: ec.europa.eu

 

Financial Information


Cumulative report of foreign financing starting from the year 2000 gives an overview on implementation of foreign funds administered through Ministry of Finance and Ministry of Agriculture in Estonian currency (EEK). The donors of the foregin funds presented in the table are European Union (for example European Social Fund, European Regional Development Fund, Cohesion Fund, European Agricultural Guarantee Fund), Norwegian and European Economic Area (EEA) and Swiss Confederation.

In the statistical table one can find overall financial volume of the funds as well as their volume of financing agreements, payments to beneficiaries, financial assistance received from the donor and unemployed funds and their percentage to financial volume of the fund. In addition there are diagrams on implementation of the Structural Assistance for the period 2007-2013.

Last updated: 16 August 2017