According to Bank of Estonia's (Eesti Pank) latest statistical release, the interest rate on loans with a maturity of over one year issued to companies by banks and the leasing companies associated with them was 5.81 percent in the second quarter (Q2) of 2023. This was more than 3 percentage points higher than a year earlier.
The interest rate on loans to companies for under one year was 6.20%, and the interest rate on overdrafts and other renewable credit was 5.42%.
The average interest rate on car leases issued to companies was 5.69%, which is the highest level of the past 13 years.
The average interest rate on long-term loans issued by euro area monetary financial institutions was 4.40% in June. In Estonia it was 7.43%.
The interest rate on newly issued housing loans with a mortgage from banks and renegotiated contracts was 5.12 percent. This was 3.15 percentage points higher than in the second quarter of 2022 and was also the highest it has been in the past 14 years. The average interest rate for housing loans issued by creditors was 14.97 percent.
The average interest rate on housing loans issued with a mortgage by euro zone monetary financial institutions was 3.69 percent in June, which was 0.34 percentage points higher than three months earlier. Interest rates on housing loans in Estonia have been an average of 0.6 percentage point higher than those in the euro zone as a whole over the past seven years.
The interest rate on new consumer loans and leases other than for cars, issued by banks and the leasing companies associated with them was 12.17 percent, having risen by 0.26 percentage points over the year. The interest rate at other creditors was 20.69 percent.
The interest rate on new car leases issued by banks and the leasing companies associated with them was 5.74 percent in Q2, having more than doubled on year. The interest rate on car leases issued by other creditors was 22.41 percent, which was 2.2 percentage points higher than a year previously.
Interest rates on time deposits of up to a year were at their highest level for the past 13 years in Q2, 2023. The rate for households was 3.12 percent and 2.93 percent for businesses.
The interest rate on time deposits of over one year was 4.42 percent for households and 4.19 percent for businesses. Around 90 percent of households' time deposits were time deposits of up to a year, while this was the case for 97 percent of corporate term deposits.
Editor: Michael Cole