The Bank of Estonia reported that households were net borrowers of €285 million in the second quarter, and one reason for this has been an increase in borrowing: the financial assets of households declined by one percent, while their liabilities climbed by three percent.

Nevertheless, financial assets climbed by about six percent compared to a year before.

Household deposits increased by only 0.6 percent over the second quarter. The annual rate of growth in deposits is the same as the yearly growth in loan liabilities.

In the second quarter, liabilities climbed by 2.7 percent, meaning they are 9.2 percent higher than they were a year ago. Repayment terms for loans are typically longer than one year.

Non-financial organizations borrowed €106 million net during the second quarter and their loan commitments increased by three percent over the quarter. In the last four quarters, their debt has climbed by 9.3 percent annually and amounts now for 72.8 percent of GDP.

The net lending of general government was €250 million in the second quarter, and the state's overall financial transactions were in positive balance with all institutional sectors. This means that the government was a net lender to all industries.

Total general government debt fell by 1.8 percent over the quarter and stands now at 16.8 percent of the GDP of the past four quarters.

Net lending by financial institutions was €130 million euros. The assets and liabilities of the financial sector increased by one percent over the quarter and by 10 percent over the year. The loan portfolio grew by 3.8 percent in the second quarter, and the yearly growth in it was 16.8 percent.

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