Eesti Pank: Loans and Leases to Companies Grew in April, 7% over Year
OREANDA-NEWS. The portfolio of loans and leases to Estonian companies and households grew at the same rate in April as in the preceding months. The total value of the portfolio was 6% higher in April than a year earlier. The total volume of loans and leases increased during the month by 56 million euros to 16.3 billion euros.
Growth accelerated in the early months of the year in the volume of corporate loans and leases and it was relatively fast in April as well, at 7%. Some 880 million euros of new long-term loans were issued to companies in the first four months of the year, which is approximately one quarter more than a year previously, though some of this was refinancing earlier loans. The majority of the new long-term loans were to companies in real estate and manufacturing.
The stock of housing loans was 4% larger in April than a year earlier, meaning it grew at the same rate as in the preceding months. Activity in the housing loan market has declined a little though, and 10% fewer new housing loans were issued in March and April than a year before. The volume of other loans to households again grew faster than the volume of housing loans because of strong growth in car loans, and it was up 7% over the year in April.
The average interest rate on long-term corporate loans has fallen this year, if a sharp spike in March caused by individual transactions is excluded. The average interest rate for loans issued to companies was 2.1% in April, while the average interest rate for housing loans issued was 2.3%.
The volume of loans that were long-term overdue remained small. The volume of loans overdue by more than 60 days declined slightly in April and made up 1.3% of the loan portfolio at the end of the month.
Growth in corporate and household deposits remained fast in April. Total deposits were up 8% over the year at 10.8 billion euros. Corporate deposits have been increasing faster than household deposits since the second half of last year. Like before, deposits by both companies and households individually grew faster than loans and leases.