November 11, 1997 in Nation/World

Et Tu, Estonia?

Associated Press

Estonia’s stock market plummeted almost 20 percent on Monday, the latest in a recent series of tumbles to hit the Baltic nation.

The Tallinn Stock Exchange index, or Talse, started Monday at 280.87 points and immediately declined, closing at 226.36.

The index was at 411.59 as recently as Oct. 22, but huge selloffs linked to the global turmoil in equity markets has pulled the index down a whopping 45 percent in less than a month.

Estonia’s stock market, established just last year, had soared on the back of an economy that has outperformed all others in the former Soviet Union. Analysts have credited the economic growth to pro-reform government policies.

The analysts say the country’s economy remains fundamentally sound and they expect the market to recover some, if not all, of its recent losses.

The stock market turmoil “will have some effect on the Estonian economy, but it definitely won’t affect the kroon,” the Estonian currency, said Prime Minister Mart Siiman.

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