Estonian lawmakers approve new nationwide loan register
The Estonian parliament (Riigikogu) has passed a law creating a nationwide credit register to give lenders a clearer view of borrowers' debts.
The Riigikogu on Thursday approved legislation establishing a nationwide credit register aimed at providing lenders with more accurate information on their clients' existing debts. The bill passed with 73 votes in favor, three against, and 21 abstentions. MPs from all parliamentary groups except the Conservative People's Party of Estonia (EKRE) and the Center Party supported the measure.
The credit information register will include data on mortgages, consumer loans, car payments, installment plans, and quick loans. All lenders regulated by the Estonian Financial Supervision and Resolution Authority (FSA) will be required to submit loan data to the register. Before issuing a new loan, lenders must check a borrower's existing obligations in the database.
Supporters say the centralized system will provide a clearer picture of a customer's ability to repay a debt and help prevent excessive borrowing. Under the new law, the register will be maintained by a private-sector company designated for the role by the Ministry of Finance.
The creation of a nationwide loan database has been debated in Estonia for years, as similar systems are already in use in several other EU states.
