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The banks have affirmed their wish to help their customers so that they could cope with the difficult situation. On March 25, the Bank of Estonia decided to lower the systemic risk buffer required of commercial banks from 1% to 0%. This way 110 million Euros is released to the banks, which the banks can use to cover possible loan losses and to issue new loans.

Last updated: 12.05.2020 20:59

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Although some details might differ, according to the Estonian Banking Association, all banks grant grace periods for loans and leasing contracts. In the event of insufficient resources, the banks request both individuals and companies to inform the banks well in advance to avoid defaulting.

Last updated: 28.04.2020 14:51

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If the loss of income may cause difficulties in loan repayments in due time and in full, contact your loan provider immediately. Quick action before the indebtedness occurs allows good grounds for reaching an arrangement. Also, it is important to take note your credit history would remain positivite, and no notices will be included to the Estonian Credit Register. Additional information: https://minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine.

Last updated: 28.04.2020 13:12

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The most important thing is to address the problem immediately and contact the loan provider or the leasing company. You need to act fast before the indebtedness occurs, it will provide a good ground for reaching an arrangement. Also, it is important to take note your credit history would remain positive, and no notices will be included to the Estonian Credit Register. Additional information: https://minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine

Last updated: 28.04.2020 13:13

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Grace period or debt standstill is an agreement with the bank not to repay the principal contributions of the loan during a certain period. Depending on the type of loan and the agreement with the bank or the lender, this may also mean a period of grace from interest payments (e.g. if the income is completely lost). The amount of deferred payments shall be allocated to the rest of the loan period, if necessary, the term of the loan agreement shall be extended. Other terms of the loan agreement are not changed. The duration of grace period is usually 3-12 months for mortgages, 3-6 months for leasing and consumer loans. No service fee is usually charged, or a reduced service fee is charged for contract amendment for grace period. In some cases, depending on the bank's policy, costs may be added in the form of fees for changing the contract. In specific cases, customer-specific distinctions are allowed. If you are already late with the repayment of the loan and have therefore violated the terms of the contract with the lender, the lender may also refuse the grace period. Grace period or debt standstill can be agreed with the lender and is usually due to temporary income reductions. To explore your options, please contact your lender(s). Additional information (in Estonian): https://www.minuraha.ee/et/pangandus/laenud/makseraskustes-kaitumine.

Last updated: 28.04.2020 13:13

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Mortgage guarantees are agreed in the loan agreement. If the balance of obligations between the parties changes it might give raise to change the terms of the contract and the associated guarantees. However, in a situation that has not been the making of a private individual with a mortgage, it will give no right to require additional guarantees with a reference to a general deterioration in the economic situation.
This regulation is subject to Article 335, paragraph 3 of the Property Law, which states that the mortgage holder may not require additional guarantees or partial payment of the debt if the value of the property which is the main residence of the natural person, decreases due to a change in the market situation.

Last updated: 28.04.2020 15:49

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The terms of the insurance are provided in the insurance contract, which also indicates the insurance coverage and duration. If any misunderstandings occur, contact your insurance undertaking (if you have signed the contract through an insurance broker or intermediary, you may also contact them). More information can be found here (in Estonian): https://www.minuraha.ee/index.php/et/kindlustus/probleem-kindlustusega

Last updated: 28.04.2020 21:07

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Grace period is available for clients with decreased solvency. The amount of deferred payments shall be added to the remainder of the loan period, and if necessary, the term of the loan agreement shall be extended. Other terms of the loan agreement will not be changed. Usually service fee is not charged when concluding the contract for the grace period, or lower-than-usual fee is charged. In specific cases, customer-specific derogations can be applied. For consumer financing, small loans and leasing finance, the duration of the grace period is usually 3-6 months.

Last updated: 28.04.2020 21:18

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Small businesses can usually apply for a grace period under a simplified procedure, similar to private individuals. Medium-sized enterprises are handled according to their circumstances and the needs of the company.

Last updated: 28.04.2020 21:19

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Larger companies are handled on a case-by-case basis, and the opening of KredEx Foundation measures are also to be expected. In co-operation with KredEx Foundation, it is possible to use a proportional loan guarantee (50% of the loan amount) or a fixed loan guarantee (35% of the loan amount). The maximum loan guarantee is EUR 5 Million euros or double the company's payroll in 2019 including the social tax. However, the initial amount of KredEx measure is only EUR 100 Million. It is possible this amount will need to be increased.

Last updated: 28.04.2020 21:31

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Videoconferencing is the only way to perform notarial acts remotely and all parties of the transaction have to agree to the use of these means. It is not possible to get married or divorced over a video conference but it is possible to submit an application for marriage or divorce.

If you wish to perform a notarial act by remote authentication, you need to pay attention to the following:

  • You have to agree with the notary beforehand on what the transaction is that you wish to have authenticated remotely and when would be a good time to do it. You can come to this agreement either directly with the notary or through the online self-service notar.ee.
  • In order to perform a transaction with remote authentication, the parties need to have computers that have web cameras and microphones, ID cards and card readers or Mobile-ID for giving a digital signature.
  • Remote authentication only works with the Google Chrome browser and the internet connection of the client has to be good enough for a video call.

In order to perform this act you need to log into the self-service on the web page of notar.ee.

Last updated: 13.04.2020 23:10

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When taking out a loan, you must be certain that you can repay both the principal and the interest payments of the loan over the following months, and in the future until the loan is fully repaid. It would be advisable to have some reserve savings to cover expenses of at least a few months, loan repayments included, which would help in case something unexpected happens. Knowing that the future is uncertain, a lot of people have to face redundancies or reduction of income, and if you have no savings it might be wise to consider very carefully how the loan repayments could be made in the future, and if it would make sense to postpone the borrowing a little bit.

If it is necessary to take out the loan immediately, it would be a good idea to carry out a thorough stock-taking of your financial situation, and to make sure there will be some savings against unexpected events. Before considering a loan, please look at the FAQs here: https://www.minuraha.ee/index.php/et/pangandus/laenud/intress-ja-muud-laenamisega-seotud-tasud

Last updated: 28.04.2020 22:20

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Loss of income, loss of employment or uncertainty about the future may threaten any family. It is therefore important to have a good overview of your or family's income and expenses, loan liabilities and repayment deadlines, and to consider carefully which expenses can be postponed or cancelled, to survive this difficult period. If you have maintained your income, and it is currently possible, some funds should be set aside for even harder periods to cope with unexpected situations. It would be good to have a financial buffer or some funds for peace of mind which would cover at least 3 months' expenses, but any amount would soften the impact if an unexpected cost is called for, or due the crisis, income is reduced. Additional information: https://blogi.fin.ee/2020/03/3-lihtsat-sammu-mida-teha-rahaliste-raskuste-uletamiseks-ja-valtimiseks/

Last updated: 12.04.2020 12:14

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Yes, cash reserves are sufficient. The Bank of Estonia and commercial banks have reserves which will be supplemented, if necessary. We recommend using digital payment options and card payments.

Last updated: 28.03.2020 23:01

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There is no reason to do so. In the light of the spread of coronavirus, Eesti Pank recommends that people pay by contactless card (contactless payments are particularly sensible to prevent the spread of the virus) or by smartphone wherever possible. Commercial banks have increased the default payment limit to EUR 50 per payment during the emergency situation. People who can link their card to their mobile phone through Apple Pay or Google Pay can also pay more than EUR 50 with their phone.

Be sure to follow hygiene requirements when people have used cash or entered a PIN at a card payment terminal.

Last updated: 29.03.2020 13:29

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If possible, it has been recommended to avoid using cash. Coronavirus can survive on contaminated metal, plastic and stainless-steel surfaces for up to 72 hours, on porous materials such as paper and cardboard for up to 24 hours. If you need to use cash, you should pay close attention to hygiene and wash your hands.

We recommend making payments:

  • preferably contactless payment (temporary limit is EUR 50) or
  • bank card, as usual.

Last updated: 09.04.2020 08:50

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More information about the coronavirus and restrictions related to it is available calling 1247 (from abroad +372 600 1247).