Of the approximately €1.500 billion that Estonian commercial banks believe they can lend, given the country's current wage levels, 89% has already been disbursed. The liberal policy of cheap loans, which dominated the country last year, increasing the loan volume by 40% annually and boosting domestic demand, is now giving way to a more cautious approach, driven by fears that rising bank interest rates will negatively impact the economy. The granting of long-term loans reduces the amount of disposable income available to the population, thus affecting commerce and making it more difficult for shopping centers to repay their debts. At the same time, a fierce battle is being waged among banks for customers, based on lower interest rates. Macroeconomic studies reveal that, thanks to positive assessments of the Estonian financial system by international organizations, the country enjoys high credibility. On the other hand, larger and longer-term loans are being requested every day, especially those related to real estate. 35% of families have taken out some type of loan. While five years ago household appliances were the primary type of loan, today 13% of households take out loans related to housing.
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