Parliament Approves Law on Credit Register to Launch in 2029

Estonia's parliament has approved legislation establishing a credit information registry. The registry will record all individuals' financial obligations to credit institutions and debt collection agencies. Lawmakers believe the register will help reduce excessive loan burdens.

Parliament has passed legislation establishing a credit information registry in Estonia, which will become operational in 2029. The registry's purpose is to compile all individuals' financial obligations into a single database, including both loans from credit institutions and debts to debt collection agencies.

According to lawmakers, the register will help prevent situations where individuals take on loans beyond their means. With the complete loan burden visible in the registry, lenders can make more responsible credit decisions and avoid situations where loans are issued to individuals who lack realistic capacity to repay them.

Credit information registries are widespread across many European countries, and their absence in Estonia has long been a concern, particularly given that quick-loan companies have issued loans to individuals in difficult financial situations without properly assessing their actual repayment capacity. The launch of the new registry in 2029 will provide both consumers and lenders with clearer visibility of existing loan burdens.