Bank of Estonia (Eesti Pank) estimated that the combination of the continued state budget deficit along with rising interest rates, could increase interest payments on government loans by several hundred million euros a year within the next four to five years. Around €100 million has been earmarked from next year's budget to cover loan servicing costs.
Criticism of the Bank of Estonia issued by IT and foreign trade minister Kristjan Järvan (Isamaa) is no cause for concern, and is rather more a tacit recognition of the its independence politically, Vice President of the central bank Ülo Kaasik says.