Developments in Estonian financial services were affected in the first half of 2025 by the choices of retail clients of financial services, the decline in purchasing power, and the fall in Euribor.
Inflation restrained the take-up of consumer loans and vehicle leases, and so the aggregate portfolio did not grow. The stock of private vehicle leases has diminished (see Figure 1). At the same time, loan interest rates came down as Euribor fell, giving a boost to the issue of housing loans. The number of new housing loan contracts is almost where it was when Euribor was at its lowest.
Global stock markets were down at first, but rebounded later to where they were at the end of last year. The value of pension fund investments consequently did not grow notably in the first half of the year.
Deposit interest rates fell enough that term deposits were no longer a particularly attractive way of holding funds, and so they started to decrease in volume.
The Estonian financial services market pdf version