TALLINN - Estonia's Central Bank reported that Estonian banks issued a record amount of new loans - 840 million kroons (54.2 million euros) - in October. Of that total, Hansabank issued a record 440 million worth of housing loans.
The previous monthly record for the nation's banking sector was September 2003 when banks issued 779 million kroons' worth of loans, mainly to students.
At the end of October total outstanding loans reached 17.9 billion kroons, which is 47 percent more than a year ago.
At the same time banks' outstanding loan balance to private persons increased only 133 million kroons in October, totaling 22.1 billion kroons at the end of the month and signifying an annual increase of 11 percent.
Kersti Arro, development head of Hansabank's private loan department, said that the average interest rate on housing loans and household leasing in October was 5.2 percent, unchanged from September.
According to Arro, the size of the average housing loan and household leasing was around 440,000 kroons and the average payback period was 12 years.
