Baltic republic seeks to reinvent itself as e-savvy E-stonia

The Estonian government has announced a plan to become a world leader in the internet stakes.

The former Soviet Baltic republic has announced a £10m plan to improve IT in schools and provide access to cheaper computers.

Prime Minister's technology adviser Linnar Viik says the first aim is to catch up and surpass web-savvy neighbours Finland.

"With the powers and partners involved in this, it's not a utopian dream for us to reach an internet penetration of at least 65% in three years," Mr Viik said.

Finland is among the world leaders in online access with just over 50% of its 5.2 million people regularly using the internet.

The main financial backer of the plan is Estonia's largest bank, Hansapank, which is contributing 100m kroons (£4m).

The government says it will also allocate funds, but is yet to set a figure.

The money will be used for education programmes and to finance interest free loans for purchasing computers, said Hansapank spokesman Ando Noormets.

The average monthly salary is 4,800 kroons, or £205, and most Estonians can't afford to buy computers on their own.