Corporate & Household Deposit Volume Exceeded EUR 8 bn in Estonia
OREANDA-NEWS. March 27, 2012. In February, the corporate and household loan and lease stock was 14.4 billion euros, which is 3.6% less than a year ago. New loans and leases are still surpassed by loan repayments, reported the press-centre of Eesti Pank.
Though the loan and lease portfolio decreased, new loans and leases to both companies and households continued to grow compared to the same time a year ago. New corporate loans were 27% larger than in February 2011, with short-term maturity loans growing at the fastest pace. New loan growth was above the average in the trade sector and in the real estate and construction sector.
New housing loans to households increased by more than 30% compared to February 2011. The relatively rapid growth was due to the rather modest increase a year ago. Households' car lease continues to grow the most rapidly, exceeding the last year's turnover by 60%.
The interest rates on issued loans were affected by the declining 6-month EURIBOR, which dropped by 0.2 pp on January 2012. The average interest rate on new housing loans declined by the same extent, making up 3.3% in February this year. The average interest rate on corporate loans increased slightly (to 4.5%), but this was normal fluctuation.
No major changes took place in loan quality in February. The share of loans overdue by more than 60 days remained at the previous month's level of 4.8%.
Like in previous months, the household and corporate deposit stock hiked in February as well, exceeding for the first time the level of 8 billion euros. Household deposits have increased the most, by 10% year-on-year. Corporate deposits soared as well compared to earlier months, posting an annual growth of 7%. This similar to the pace of end-2010.
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