While Russia's full-scale invasion of Ukraine initially made households in Estonia more cautious about borrowing, demand for loans has since quickly recovered. As prices on the housing market continue to rise, the average size of housing loans has increased as well, the Bank of Estonia said on Thursday.
Estonia will need to use its budget resources for the extraordinary costs caused by the war in Ukraine as well as target state support primarily toward those who need help the most, the International Monetary Fund (IMF) said at the conclusion of its regular economic policy consultations with Estonia on Wednesday.
Consumer prices were up an average of 18.8 percent on year in April, with rising energy prices joined by supply problems and very strong demand in driving inflation in Estonia. The impact of Russia's war in Ukraine has reached inflation as well, the Bank of Estonia said Friday.
A new €2 coin featuring a design by a Ukrainian refugee studying at the Estonian Academy of Arts (EKA) will enter into circulation at the end of the year. Money from collectible sales will be donated to Ukraine.
The European Central Bank may raise interest rates as early as July, not at the end of the year as expected, due to rapidly rising inflation, the head of the Bank of Estonia believes.