The decline in household debt stock has stopped

Taavi Raudsaar
Taavi Raudsaar
Financial Sector Policy Division of Eesti Pank

The total volume of household debt liabilities was 0.5% higher in the third quarter of 2012 than in the previous quarter. The volume of debt liabilities taken from banks operating in Estonia and from other financial institutions was about the same in the third quarter as in the second, while household debt taken from domestic non-financial institutions and from foreign countries has increased in recent years. Nevertheless, the annual growth of debt stock was still negative – minus 1.4%

The annual growth rate of corporate debt was 5% in the third quarter of last year. The total volume of debt liabilities taken domestically and from abroad rose in the third quarter by more than 350 million euros to a total of 16 billion euros. One third of this growth came from debt liabilities taken from abroad.

The annual growth rate for financial assets was 11% for households and 13% for companies in the third quarter. The largest contributory factor to this relatively rapid growth was the rise in the value of equity securities already held in accounts, which showed the relatively good profitability of Estonian companies in the third quarter. On top of this, the deposits and cash holdings of households and companies also increased.

The general government's debt liabilities grew by 500 million euros in the third quarter to 1.8 billion euros. The main cause of the increase in liabilities was a loan taken from the European Investment Bank for co-financing projects funded from foreign funds.

The Estonian economy as a whole was a net lender to the rest of the world by 23 million euros in the third quarter. Although companies were net borrowers for the second consecutive quarter, other sectors were net lenders.

Financial account statistics can be found on the Eesti Pank website

For further information:
Ingrid Mitt
Public Relations Office
Tel: +372 668 0965, +372 512 6843
Email: ingrid.mitt [at]
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