According to the latest figures from the Bank of Estonia,
bad debts are soaring in the Baltic state’s financial services
sector, with leasing taking the heaviest part of the burden.
According to the Bank, year-on-year growth in Estonia’s loan and
leasing portfolio slowed to just 0.7 percent in April, and lending
volume fell 0.6 percent compared to the previous month.
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More worrying, though, was the announcement that 5.2 percent of
the country’s loans are now more than 60 days in arrears – a figure
up significantly from 4.5 percent in March.
Analysts stated that nearly 75 percent of the bad debts had been
accrued from corporate lending, including leasing, while consumer
delinquency levels had remained relatively stable.
Fred Crawley
