Estonia's long-term overdue loans ease in October

Loans and leasing payments more than 60 days overdue in euro zone member Estonia's banking system eased to 5.7 percent of the total loan portfolio in October compared to a revised 5.9 percent in September, the Estonian central bank said on Wednesday.

Estonia's banking system is more than 95 percent controlled by four Nordic financial groups, Swedbank and SEB among them.

"Loans overdue more than 60 days decreased by 31 million euros ($41.83 million) in October," the central bank said in a statement.

The bank added that there was a decrease of 145 million euros worth of long term loan and leasing deals in October, to be still 36 percent higher from the same period in 2010.

"The deterioration of the external environment has not had a big impact on the Estonian loan market," the bank said.

The Estonian central bank expects overdue loans to stabilise at 5.0 percent of the total loan portfolio by the end of 2011.

Toomas Hõbemägibbnatchararipaev.ee