The growth in housing loans was faster in January at 5.6% than it was a year earlier

Mari Tamm
Economist at Eesti Pank
  • The number of housing loans rose, as did their average value
  • The total volume of loans and leases to companies continued to grow fast, increasing by 7.1% in January
  • The value of deposits again increased faster than the loan portfolio of the banks

The portfolio of loans and leases taken by Estonian companies and households from banks and leasing companies operating in Estonia increased relatively quickly in January, as it did last year. At the end of January the consolidated portfolio of loans and leases was 6.5% larger than at the same point a year earlier. The total volume of loans and leases increased during the month by 61 million euros to 17.2 billion euros.

The increase of 7.1% over the year in the portfolio of loans and leases taken by companies from banks operating in Estonia was again fast, though a little slower than in the preceding months.  A little over one fifth more was issued in new long-term loans than in the previous January. There was less borrowing from abroad though, and the total corporate debt did not change much. Long-term loans grew in January like they had in previous months in most sectors. Companies in real estate and construction were the largest takers of new long-term loans, taking one third of the total amount.

The yearly rate of growth in housing loans accelerated in the same way as in previous months, posting 5.6% in January. New housing loans of 79 million euros were granted and in the past three months, both the number of housing loans and their average value rose. The volume of car leases continued to grow rapidly, and was up 14% in January on a year earlier. The value of overdrafts and credit card loans started to rise in the autumn, and in January it was 3% higher than a year before.

The average interest rate on new long-term corporate loans was the same in January as the average of the previous year. The average interest rate on new long-term corporate loans was 2.3% in January. The average interest rate on new housing loans was a little lower in December and January at 2.2% than in earlier months, leaving it at about the same level as at the end of 2015 and the beginning of 2016.

The volume of loans overdue by more than 60 days in the loan portfolio increased slightly in January, but remained small. The stock of loans overdue for more than 60 days increased in January by around 13 million euros to 185 million euros, accounting for 1.2% of the loan portfolio. There was a rise in the value of the long-term overdue loans to companies in industry, real estate and construction, and the primary sector.

Annual growth in the deposits of companies and households remained strong in January at almost 9%. The value of deposits decreased slightly during the month, which is typical for the start of the year. At the end of the month the deposits of companies were 10.2% larger than at the same point a year earlier, and those of households 7.6% larger. The value of deposits again increased faster than the loan portfolio of the banks over the year.


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