Summed up

ESTONIAN BANKS MAKE SAFETY DEPOSITS: Estonian commercial banks made their first payments to the Deposit Guarantee Fund which will compensate up to 20,000 kroons ($1,400) per depositor if a bank goes bankrupt. According to the current law, all commercial banks will have to pay quarterly 0.125 percent of the volume of deposits each bank holds In addition to the quarterly payments, the fund will receive a one-time payment of 50,000 kroons from each bank. The resources of the Deposit Guarantee Fund will be held at the central bank. (ETA)

DANES GO FOR LITHUANIAN PEAT: Danish company, Bistrup Planteskole Aps Co., purchased a share stake of 28.73 percent in the leading Lithuanian peat export company Rekyva. Rekyva will invest the received funds in modernization of equipment and technologies. It intends to buy an automated peat sorting line and peat excavation equipment and to update the tractors. The company plans to start producing peat for plant-growing. So far, it accounts for merely one-tenth of total production. Rekyva exports about 94 percent of its output to European countries. It's main customers are in Italy and Greece. In the first six months the company's turnover was about 8 million litas ($2 million) with a net profit of 1.2 million litas. (ELTA)

EXCHANGE RUSSIAN RUBLES IN LATVIA: Latvian commercial banks are still buying Russian rubles despite the fact that several Moscow banks have stopped exchanging Russian rubles against U.S. dollars. Latvian Parex Bank's currency exchange offices were buying 10 Russian rubles for 0.92 lats ($1.5) and selling at 0.98 lats. The rate is similar in other currency exchange offices in Riga. Several major banks in Moscow stopped the exchange of Russian rubles against U.S. dollars or had considerably increased the rate of the dollar on Aug. 14. The banks explained that they were unable to meet rising demands for the dollar that have been fueled by fears that the ruble might be devalued. (BNS)

ESTONIAN RAILWAYS INTRODUCES INSURANCE: Estonian Railways signed a cooperation agreement with the insurer Seesam which will provide accident and property insurance contracts to passengers on Estonian Railway's international trains. Tarmo Rei, head of Estonian Railways international passenger traffic unit, said accident insurance covers fires on trains as well as unavoidable external events influencing the train. The maximum insurance sum per person is 400,000 kroons ($28,500). Property insurance compensates personal and property damage caused by Estonian Railways. The maximum amount of losses that can be reimbursed during any one insurance period is 5 million kroons. In the case of property damage, the maximum limit of reimbursement is 30,000 kroons per person. (ETA)

LITHUANIA SELLS SHARES IN COCA-COLA PLANT: At a public auction, the Lithuanian State Assets Fund proposed to sell a 22.9 percent stock package in the joint Lithuanian-U.S. closed stock company Alytaus Coca Cola Gamykla. However, the Agriculture Ministry, which prepared the company's privatization program, stated the best option would be to sell the shares to the major shareholder through direct negotiations. The U.S. investor presently controls 70 percent of the Alytus plant. Its share capital comes to 18.95 million litas ($4.73 million). The state's share capital is 4.35 million litas. According to the Lithuanian State Assets Fund, the conditions for privatization of the Alytaus Coca Cola Gamykla should be solidified and submitted by Aug. 24 to the Privatization Commission. "It is still unclear whether the condition set by the company's founder will be upheld. According to this condition, the state-held package can be sold only to an investor with a license for the distribution and production of Coca Cola beverages," said Lithuanian State Assets Fund's spokesperson. (BNS)

LIEPAJA ATTRACTED CHINESE INVESTORS: Hong Kong corporation KAY-EL will rent unused production facilities covering a total space of 16,000 square meters in the territory of the Liepaja Special Economic Zone (SEZ). The agreement on rent and $7 million investment might be signed by the end of August, said Gundars Bojars, Liepaja SEZ development department head. "This is a good chance to use the huge production premises built during the Soviet era which have stood unused since reorienting to the market economy," Bojars said. Bojars also said this contract is very advantageous to the investor because it allows him to start production earlier and at lower costs. KAY-EL will rent 10,000 square meters from the Latvian company Lauma to set up a production company of men's garments company. The Hong Kong company plans to invest $3 million in the new company. It is also planning to use 6,000 square meters of the Liepaja meat packing company and to invest $4 million to open an industrial chemical facility. (BNS)