Bank of Estonia Warns: Loan Repayment May Become Slightly More Challenging

While the share of bad loans remains very low in Estonia, a recent analysis by the Bank of Estonia (Eesti Pank) suggests their number will start to grow as a result of rising unemployment and falling sales revenue.

While difficulties repaying loans might be a serious problem for individual households, the central bank does not forecast major setbacks for the financial sector or the economy as a whole thanks to preexisting buffers, the Bank of Estonia finds in its recent financial stability overview.

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