摘要：Housing finance has experienced rapid development in Estonia during 2000–2006. In a very
open economy with strong macroeconomic policies and the ultimate goals of accession to the
European Union and the Economic and Monetary Union, the necessary environment for financial
deepening was created already before the year 2000. From the initially very low levels of financial
deepening the steady decrease in interest rates and improved credit conditions have boosted
household and corporate sector borrowing, which has been strongly supported by foreign
funding. As a result, household debt has increased almost five times from the level of 15% in 2000
to the level of 74% of net disposable income in 2006. Improved availability of credit has brought
along a robust development in the residential property market where prices doubled during the
three years between mid-2003 and mid-2006 and started to level off after that.
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