Caspar Schulze, 2 June 2026
Christopher Butler Research Fellow and Baltic Barometer Editor

BISC has launched the first edition of its flagship Baltic Barometer publication – a quarterly report which seeks to bring clarity to pressing financial, economic and security questions from across the Baltic states, through timely, succinct analysis.

The international commentariat like to present the Baltic states as fragile, geopolitically exposed and stressed. The first Baltic Barometer, however, highlights that financial markets are not spooked by the Baltic states’ proximity to Russia.

It draws attention to a point that comes as a surprise even to some with the region itself: Lithuania, Latvia and Estonia’s creditworthiness means that they borrow at roughly the same rate as G7 France; or Slovenia, a similarly-sized Eurozone economy in an enviably safe neighbourhood. Markets apply no significant geopolitical risk premium to either sovereign or corporate borrowers.

The report also spotlights the Baltic states’ other financial strengths. It highlights the region’s thriving venture capital ecosystem and the recent expansion of local corporate bond markets.

It could be even better. The Barometer emphasises the cost of the regional equity market’s (Nasdaq Baltic) continued classification as an ‘advanced frontier market’. Its low liquidity places it outside the investable universe of international passive funds and many large institutional investors. As a result, it remains neither a significant source of corporate financing nor a viable exit channel for investors.

The report therefore calls for a coordinated regional push to encourage the partial listing of Baltic SOE’s, ‘unicorn’ companies or the large Nordic banks with sizeable Baltic footprints. If successful, these efforts could help upgrade the Baltic equity market to ’emerging market’ standing – a move which could precipitate the inflow of hundreds of millions of Euros in portfolio investments.

To read about this, and more, download the Baltic Barometer here.