ABSTRACT
Estonia regained its independence from the former Soviet Union in August 1991. Some of the necessary legislation to start privatization was adopted prior to this event. However, the main institutional framework and conditions for the realization of the whole process were created afterwards. An important prerequisite of privatization was Estonian currency reform, which completed the separation of Estonia from the rouble zone and was accompanied by the introduction of the Estonian kroon (EEK). The monetary stabilization achieved after this step made a more business-oriented approach to privatization possible and encouraged foreign investors to participate in the process.
