Mari Tamm, Financial Sector Policy Division of Eesti Pank, Specialist
In April, the corporate and household loan and leasing stock in Estonia increased 2.9 billion kroons, i.e., 1.1%. The slowdown in the annual loan and leasing portfolio growth continued, declining to 23% in April. Against the backdrop of the slowing growth rate of the aggregate loan and leasing portfolio, the credit growth of manufacturing companies has remained strong (33% in April). This reflects the readiness of the banking sector to continue to finance productive business projects,
which is one of the main preconditions for a smooth economic adjustment.
Taking into account the changes in the economic environment, the quality of banks' loan portfolio deteriorated in April. The share of loans overdue for more than 60 days reached the level of 1.3% of the total loan portfolio. Against the background of the ongoing recession in the real estate market, the share of overdue loans increased the most as regards real estate companies. The share of housing loans overdue for more than 60 days also increased somewhat in April,
constituting 0.8% of the loan portfolio.
Corporate and household deposits increased 2.1 billion kroons in April. The annual deposit growth rate remained close to the 10% level recorded in March. Similarly to earlier months, the growth of time deposits continued,
whereas the growth of demand deposits kept declining.
The average interest rates on household and corporate loans have been mostly in line with the developments of the EURIBOR. In April, the average interest rates on housing loans and long-term corporate
loans were 5.5% and 6.1%, respectively.
Figure 1. The annual growth of household and corporate loans and leases in Estonia
Figure 2. The volume of corporate and household deposits (EEK million) in Estonia and the annual deposit growth rate (right scale)
Figure 3. The weighted average interest rate and 6 months' EURIBOR of housing loans and long-term corporate loans issued
within a month
Eesti Pank publishes a monthly statement on the most relevant financial sector indicators.
The respective statistics and publication calendar are available on the web site of Eesti Pank at
www.bankofestonia.info/pub/en/dokumendid/statistika/pangandusstatistika/tabelid/.
