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During the first seven months of the current year, young families, young specialists and forced tenants have used KredEx guarantees to take housing loans from the banks in the total amount of 852 million kroons. With the help of these loans 1011 young families and specialists, and 6 forced tenants have acquired new homes. Out of all housing loans issued in Estonia, the loans issued with KredEx guarantee forms 4.55% as of the end of June.
In 2007 banks issued 1217 housing loans with KredEx guarantee in the amount of 1.2 billion kroons, which formed 3.8 % of all housing loans issued in Estonia.
As KredEx products are directed to a narrow target group and only to loans that are meant for improving the living conditions, and the banks had become more liberal in issuing the loans, the proportion of the housing loans with KredEx guarantees decreased in the number of loans from 2001 until 2006 from 29.4 per cents to 2.6 per cents. Due to slowing down of the growth of issuing of housing loans and to the fact that the banks have become more conservative during the last year, the proportion started growing again, reaching 3.8 per cent.
According to Ms Mirja Adler, the head of the KredEx division of housing products, the main reason for the growth in the proportion of KredEx guaranteed housing loans is due to the cooling of the real estate market, the more rigid loan conditions provided by the bank and the demand for higher self-financing. "Although the volumes of the loans issued by the banks have decreased, the volumes of the housing loans issued with KredEx guarantees have increased in comparison to the same period of last year by 16.7%, which proves that KredEx guarantees are especially needed at tougher times, " added Adler. During the seven months of the current year, KredEx guarantees have been used in the 67% of the amount for buying the flats and in the 18% of the amount for buying a house. In other cases the money was used for renovating or building the houses.
KredEx has issued housing loan guarantees to young families, young specialist and tenants living in restituted buildings since the year 2000. During this time 12,521 young families, 6,123 young specialists and 65 tenants living in restituted building have improved their living conditions with the help of KredEx. Banks have issued housing loans with KredEx guarantees in the total amount of 8.5 billion kroons
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