The annual growth in housing loans remained at 3.9% in October for the fourth consecutive month

Mari Tamm
Mari Tamm
Economist at Eesti Pank

The loan and lease portfolio of Estonian companies and households continued to grow stably in October. The loan and lease stock stood at 15.9 billion euros at the end of the month, which was 3.6% more than a year earlier.

The portfolio of loans and leases to companies grew by 3.2% over the year. The fastest growth in recent months has been in loans and leases to companies in trade, energy and industry, while the stock of loans to companies in agriculture and transport and storage has declined from a year before.

The annual growth in housing loans remained at 3.9% for the fourth consecutive month. New housing loans have been granted at a slightly slower rate in recent months than during the first half of the year. Activity and average prices in the housing market have also increased a little more slowly in recent months. Annual growth in other loans to households picked up to 4.8%, mainly because of car leases, which increased by 14% over the year.

The average interest margin on housing loans has increased this year. The average interest rate on housing loans remained around 2.3% in October despite lower base rates. The average interest rate on corporate loans, which is more volatile because each business project has its own specific features and risks, has increased in the past two months.

The share of overdue loans in the loan portfolio is at its lowest level of recent years. The stock of loans overdue for more than 60 days shrank to 195 million euros in October to make up 1.4% of the loan portfolio. The value of overdue loans fell mainly because of a reduction in overdue loans to companies in industry and trade.

Growth in corporate and household deposits remained fast in October at 8.2% over the year. Total deposits increased by the end of the month to 10.5 billion euros. The growth in household deposits has been a little slower in recent months, and was 6.7% in October, while annual growth in corporate deposits was 10%.


Financial sector statistics and the publication schedule for them are available on the Eesti Pank website.

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