The positive credit register concept has been discussed in Estonia for years. Creditors have repeatedly suggested that a database listing all individuals' financial obligations would help address the issue of people becoming over-indebted.

Minister of Finance Jürgen Ligi (Reform) told ERR that such a bill is about to be submitted for a round of approval.

"I've approved [this bill] in principle," he said. "The details have been worked out."

According to the minister, the bill will legally authorize the private sector to establish a new general database of liabilities that should then be used as a basis for issuing loans.

He explained that the creation of this loan register wouldn't actually significantly change the current situation, as even now, loan applicants must submit info regarding their current financial status. In the future, lenders would simply have assurances that the financial information provided is accurate.

Asked whether he isn't concerned that the creation of a new database could infringe on individuals' privacy or possibly be susceptible to leaks, Ligi replied that risks must be mitigated and safeguarded regardless.

"But we can't live in fear of the possibility that someone might make a mistake," he added.

Ligi said that the bill also stipulates that employees of companies with access to the database cannot arbitrarily look up data regarding individuals' financial obligations, and that the latter will be able to view who has accessed their data. The database also cannot be used for making loan offers.

Market participants, including banks and lenders, are aware of the Finance Ministry's plans, have participated in the process and are satisfied with the developments, he said. The bill should be submitted for a round of approval in the near future.

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