The loan and lease portfolio of Estonian companies and households was 4.1% larger in July than a year earlier

Mari Tamm
Economist at Eesti Pank

The volume of loans and leases to Estonian companies and households increased by 259 million euros in July to 15.8 billion euros. The financing portfolio increased by 4.1% over the year.

The annual growth in the corporate loan and lease portfolio rose to 4.2% in July. Corporate loans of 980 million euros were issued during the month, which is the largest amount seen in recent years. The large volume of new long-term loans stands out particularly, with some large individual transactions contributing as well. It was mainly manufacturing, real estate and trade companies that took more in long-term loans than previously.

The housing loan portfolio continued to grow moderately, increasing by 3.9% over the year. The 89 million euros granted in new housing loans was the largest monthly amount for some years. The rate of growth for other household loans and leases has increased in recent months, partly because of the growth in loans and leases for cars.

The average interest rate on loans issued by banks remains low because base rates are low. The average interest rates on housing loans and long-term corporate loans were both 2.2% in July, the same as in the previous month.

There was a slight increase in July in loans not repaid on time, as in preceding months, but the total volume remains small. The share of loans overdue by more than 60 days in the loan portfolio was 1.7% at the end of the month. The growth in overdue loans in recent months has mainly come from industrial and agricultural companies.

Household deposits were 8% larger in July than a year earlier, like in recent months. The small decline in corporate deposits meant that total corporate and household deposits at the end of the month were the same as in the preceding month at 10.3 billion euros. 


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