Eesti Panga President — Amendment of Eesti Pank Governor’s Decree No 17 of 12 December 2014 “Limits on granting housing loans and maximum loan maturity” — RT V, 2016, 4

This Decree is established on the basis of subsection 83 (21) of the Credit Institutions Act. § 1. Eesti Pank Governor’s Decree No 17 of 12 December 2014 “Limits on granting housing loans and maximum loan maturity” (RT I, 08.04.2015, 14) is amended as follows

1) the following subsection 11 is inserted in section 1 of the Decree

“(11) The requirements specified in subsection 1 of this section must be met at the moment when the amount of a housing loan (or, in the event of granting the housing loan in instalments, the first instalment of the loan amount) is granted to the disposal of the borrower.”;

2) subsection 3 (2) of the Decree is amended and worded as follows

“(2) The loan-to-value ratio may be up to 85%.”;

3) subsection 4 (2) of the Decree is amended and worded as follows

“(2) The debt service-to-income ratio may be up to 50%.”;

4) section 6 of the Decree is amended and worded as follows

Ҥ 6. Limit for permitted exceptions

Exceeding the limits specified in section 3 and/or 4 of this Decree and/or for a longer maturity than set forth in section 5, a credit institution may issue up to 15% of the total amount of new housing loans issued within one quarter.”.

§ 2. This Decree enters into force on 1 April 2016.