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Bank of Estonia: loans late in payments will reach 3.1% of the total volume in 2009
Juhan Tere, BC, Tallinn, 17.06.2008.
Print version
Print versionThe Bank of Estonia predicts in its recent comment on the state of economy that in 2009 the proportion of loans which are late in making payments will reach 3.1% of the total volume, writes the National Broadcasting.
“On the basis of analysis on the strength of loans late in payments we predict that their proportion will grow to 1.5 – 2.6% by the end of the year 2008 and to 2.2 – 3.1% in the year 2009,” stated the Bank of Estonia.
The central bank noted that storing the banks’ profits from earlier years in their own funds, their capitalisation has increased and this enables them to better cope with the growing losses from lokans, reports LETA.
The Bank of Estonia stated that although the volume of overdue loans is expected to grow this year as well as in 2009, it will not threaten the Estonian financial system’s functioning.
In near future the main threat to Estonia’s financial stability will be the escalating credit risk.
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