(TALLINN) - Estonia more than doubled its bank deposit guarantee to 50,000 euros (68,000 dollars) on Thursday, in line with a European Union-wide move decided two days earlier.

In a statement, the government announced that with immediate effect it was guaranteeing 100 percent of accounts, up to a maximum 50,000 euros or their equivalent in kroons, the national currency.

Previously, the Estonian government had guaranteed only 90 percent of deposits, up to a maximum 20,000 euros.

"The aim of the decision is to treat people within the EU equally and to give additional security to people saving their money in banks in Estonia," the government said.

Baltic state Estonia, which joined the EU in 2004, followed the lead of a handful of other members of the 27-nation bloc, even though most of its depositors had been protected by the existing 20,000-euro guarantee.

"There is less than 20,000 euros in 98 percent of bank accounts in Estonia," Piret Seeman, a finance ministry spokeswoman, told AFP.

A number of EU members have gone beyond the 50,000-euro guarantee agreed by the bloc's finance ministers on Tuesday.

On Wednesday, Estonia's fellow Baltic state and EU newcomer Lithuania had raised its guarantee to 100,000 euros from the previous 22,000 euros.

On Tuesday, EU partners Spain, The Netherlands, Greece and Austria had also announced they were raising their deposit protection to 100,000 euros.

After Germany offered a blanket guarantee on bank deposits on Sunday, Britain, Denmark, France, Portugal and Sweden indicated they had similar plans in the works.

Ireland triggered the rush last week, offering an unlimited guarantee on all deposits at its biggest banks.

Analysts have expressed concern that if European nations set up varying bank deposit guarantees, people may choose to move their savings to the countries with the greatest protection, possibly sparking a flight of funds from states with lower guaranteed deposits.

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