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The Bank of Estonia warns growth cannot continue indefinitely

13.01.2007

According to the central bank, Estonia’s economic growth has reached its peak. Credit growth is expected to maintain its current level, although the real estate market is showing signs of declining demand. The financial standing of banks is strong and their capitalization and liquidity are sufficient regarding the current economic environment. The short-term risks of the banking sector are well-managed with the help of parent banks. The main risk facing the banking sector is the concentration of the loan portfolio on financing real estate development and related investment.

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