The Main Changes In Financial Behaviour Of Estonian Firms In Transition Economy

This paper analyzes main changes in financial behaviour of Estonian companies in the period of economic transition in Estonia from 1994 to 2003. Empirical results of Estonian firms’ interview study, undertaken annually during 1994-2003, are presented in the paper. We have used other sources in preparation of this paper, which are derived from publicly disclosed statistics of financial institutions and firms. The analyze concentrates on payment habits and terms, as well as on informal borrowing and lending. There exists strong tendency of stabilizing official and habitual payment terms and decrease in informal lending and borrowing. If the informal borrowing was mentioned as an important source of financing in the questionnaires of mid-1990, it has become insignificant in last questionnaires. At the same time the payment habits have became stable and payment terms have slightly decreased