Bank robs grace period applicants of an extra 150 000 EEK (Äripäev, in Estonian)

09 Feb 2010

The monthly payment on home loan’s will increase by 500 EEK for applicants for a grace period, so over the next 25 years the bank will earn an extra 150 000 EEK.

Redgate Capital’s Senior Partner Veikko Maripuu said that it would be a nice dream if Estonian banks protected people more than foreign banks: Estonia wasn’t the only country to suffer from the loan boom – it was general human greed that was everywhere. He pointed out that 25% of United States home loan takers, who have to give up their home, do so systematically and added that we don’t need that kind of system in Estonia.

There are home loans to the value of 100 billion EEK; 150 000 loan contracts have been made and the average loan is 650 000 EEK. 5000 loan takers are in serious trouble and5% of the home loan takers are over 60 days overdue.

Read full article here.