Banks, Estonia, Financial Services, Investments

Jana Kask, Head of Financial Sector Policy Division of Eesti Pank said that in July, household and corporate deposits decreased by a total of 2.2 billion kroons, i.e. 2% to 111.1 billion kroons. The annual growth rate decreased to 4.9% in July, writes LETA.

 

Characteristic to summer, the majority of the fall in deposits volume came on account of companies. Banks unified interest rates on deposits in kroons and euros in the middle of July and the low level of interests paid on deposits in kroons has reduced the wish of private individuals to keep their money in term and savings deposits.

 

In July, the stock of loans and leasing to households and companies in Estonia declined by 1.7 billion kroons, i.e. 0.7%. At the end of July, the loan and leasing portfolio totalled 241.7 billion kroons which is 6.8% lower than a year ago. The residue of loans and leasing portfolio fell as much as it did in June although the volume of new loans issued to companies was in July by nearly a third bigger than in the preceding six months on average. The major growth of loan turnover in July was affected by a syndicate loan given to the industrial sector.

 

The stock of loans overdue for more than 60 days remained relatively stable compared with the previous month. At the end of June, the volume of loans overdue for more than 60 days amounted to 7.2% of the loan portfolio. The share of housing loans more than 60 days overdue has however increased this year by 0.5 percentage points to 4.7%.