The ministry says it will in the near future use this as a basis to draft legislation aimed at launching the register.

The register's creation has been under preparation for a couple of years now.

Finance Minister Mart Võrklaev (Reform) has said Estonia is still facing a situation in which tens of thousands of people are struggling with loan payments of various types.

The minister is now looking for quick progress on a possible solution, and the relevant bill is planned to be sent to the Riigikogu in the fall.

Following the launch of the positive credit register, all banks and other lenders are to start conveying data about individuals' financial obligations to that register.

When considering a new loan, leasing agreement or installment payment, lenders will be required to cross-refer to the register, in order to find out the status of a loan applicant's existing financial obligations.

The research commissioned by Cybernetica is aimed at gathering information on how to create a register which will protect individuals' privacy and will serve to ensure the sharing of information necessary for responsible lending, in a manner where smaller lenders can also join the positive credit register.

Thomas Auväärt, deputy head of the financial services policy department at the Ministry of Finance, said decisions need to be made on how to set up the register from a technical perspective, what the state's specific role is, and how data protection will be best ensured.

Auväärt said: "During the course of study, it turned out that stakeholders had slightly different preferences on these issues. Our task now is to lock down the most relevant option."

Cybernetica itself suggests as a primary recommendation a central registry with a single registry keeper, based on privacy protection technology and using a Trusted Execution Environment (TEE).

This would mean the registry keeper cannot see personal data, with the lenders remaining responsible for its accuracy. Another option using the same technology would involve multiple registry keepers.

A third option, which market participants say they prefer, involves a central database based on conventional technology, which Cybernetica recommends enhancing via partly encrypted database technology.

In addition to heading off excess debt, the register could also provide individuals with an overview of the status of their mortgages and consumer loans including leases and installment plans, as per data scraped from lenders.

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