TALLINN — The Bank of Estonia reported Tuesday that the amount of corporate and household loans continued to decline in April.
According to central bank of Estonia the corporate and household loan and leasing stock declined by 1.5 billion krooni (€95 million), about 0.6 percent. The overall loan stock, including corporate, mortgage, small businesses, personal loans, and leasing remained at 246 billion krooni (€15 billion) which is lower by 6.6 percent compared to [private_supervisor]the same period last year. Only 2.2 billion krooni worth of loans were given to the enterprises in April and almost half of it went to trade and industrial sector.
Tõnu Palm, the economist of Nordea Markets told Äripäev that the increase of loans given for corporations reflects the weakness of overall investment activity given that domestic demand remains low presently and for the near future.
“Also the tougher loan terms set by the banks play a small role,” Palm said.
Katrin Lamp, director of Swedbank corporate banking said that the problem is rather related to amortization of corporate loans.
“The loan portfolio depreciates faster than the capacity of new loans grows,” Lamp told Äripäev,“ “It is natural because the security for doing new investments is not the same as it was during the boom times.”
New loans have been increasing a little thanks to the talks about the euro adoption and entrepreneurs dare to make long term investment decisions.
“Improvement in the quality of the loan portfolio is a time-consuming process, which will take years even if economic activity picks up,” Siret Vildo, a financial specialist at the Bank of Estonia said in a statement to the press. [/private_supervisor] [private_subscription 1 month]the same period last year. Only 2.2 billion krooni worth of loans were given to the enterprises in April and almost half of it went to trade and industrial sector.
Tõnu Palm, the economist of Nordea Markets told Äripäev that the increase of loans given for corporations reflects the weakness of overall investment activity given that domestic demand remains low presently and for the near future.
“Also the tougher loan terms set by the banks play a small role,” Palm said.
Katrin Lamp, director of Swedbank corporate banking said that the problem is rather related to amortization of corporate loans.
“The loan portfolio depreciates faster than the capacity of new loans grows,” Lamp told Äripäev,“ “It is natural because the security for doing new investments is not the same as it was during the boom times.”
New loans have been increasing a little thanks to the talks about the euro adoption and entrepreneurs dare to make long term investment decisions.
“Improvement in the quality of the loan portfolio is a time-consuming process, which will take years even if economic activity picks up,” Siret Vildo, a financial specialist at the Bank of Estonia said in a statement to the press. [/private_subscription 1 month] [private_subscription 4 months]the same period last year. Only 2.2 billion krooni worth of loans were given to the enterprises in April and almost half of it went to trade and industrial sector.
Tõnu Palm, the economist of Nordea Markets told Äripäev that the increase of loans given for corporations reflects the weakness of overall investment activity given that domestic demand remains low presently and for the near future.
“Also the tougher loan terms set by the banks play a small role,” Palm said.
Katrin Lamp, director of Swedbank corporate banking said that the problem is rather related to amortization of corporate loans.
“The loan portfolio depreciates faster than the capacity of new loans grows,” Lamp told Äripäev,“ “It is natural because the security for doing new investments is not the same as it was during the boom times.”
New loans have been increasing a little thanks to the talks about the euro adoption and entrepreneurs dare to make long term investment decisions.
“Improvement in the quality of the loan portfolio is a time-consuming process, which will take years even if economic activity picks up,” Siret Vildo, a financial specialist at the Bank of Estonia said in a statement to the press. [/private_subscription 4 months] [private_subscription 1 year]the same period last year. Only 2.2 billion krooni worth of loans were given to the enterprises in April and almost half of it went to trade and industrial sector.
Tõnu Palm, the economist of Nordea Markets told Äripäev that the increase of loans given for corporations reflects the weakness of overall investment activity given that domestic demand remains low presently and for the near future.
“Also the tougher loan terms set by the banks play a small role,” Palm said.
Katrin Lamp, director of Swedbank corporate banking said that the problem is rather related to amortization of corporate loans.
“The loan portfolio depreciates faster than the capacity of new loans grows,” Lamp told Äripäev,“ “It is natural because the security for doing new investments is not the same as it was during the boom times.”
New loans have been increasing a little thanks to the talks about the euro adoption and entrepreneurs dare to make long term investment decisions.
“Improvement in the quality of the loan portfolio is a time-consuming process, which will take years even if economic activity picks up,” Siret Vildo, a financial specialist at the Bank of Estonia said in a statement to the press. [/private_subscription 1 year]
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