Draft law amending the Act of Obligations (621 SE) - first reading
Session: 15th Riigikogu, 6th sitting, plenary session
Date: 2025-09-11 02:20
Participating Politicians:
Total Speeches: 54
Membership: 15
Agenda Duration: 32m
AI Summaries: 54/54 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The draft law 621, initiated by the Centre Party faction, amending the Civil Code, was debated on the first reading. The central aim of the draft is to change the level of requirements for the lender in relation to the early repayment of a mortgage: currently, the bank can demand compensation for lost interest income, if the borrower switches to another bank. The Centre Party faction proposed replacing this three-month period with a mechanism that encourages interbank lending without additional costs – if a person has an existing loan in another bank, they should not have to pay three months’ interest to the current bank. This aim seeks to reduce loan management costs and increase competition between banks; the proposal is based on suggestions given to the Bank of Estonia and the Financial Supervision Authority, which have been incorporated into the proposal. In addition, possible additional measures to improve the accessibility of real estate were also discussed, such as reducing the burdens of notarial acts and property valuation, and easing the administrative costs associated with mortgage transfers, in order to encourage housing purchases among young families. The text emphasized the importance of steps necessary to alleviate the demographic crisis and the potential to lower mortgage interest rates, which could reduce the threshold for acquiring property.
In the second part, questions were raised regarding the absence of an impact assessment, and indeed discussions were had regarding the extent of the law’s impact on both consumers and the real estate market. At the end of the discussion, it was decided to reject the draft law on the first reading, based on the possibility of using a broader package of measures and taking into account the recommendations of the government and financial experts – in the next phase being prepared to carry out further analyses and consider the effects in a broader context. The result of the process was a vote showing that the draft law was rejected and the procedure was withdrawn from that stage.
Decisions Made 2
The Riigikogu voted in favor of rejecting bill 621 on the first reading of the Leading Committee’s (Legal Committee’s) proposal. 47 members of the Riigikogu voted for the proposal, while 13 voted against it. The bill was removed from the legislative process.
Agenda item 12 (the first reading of bill 626, the amendment to the motor vehicle tax law, initiated by the Centre Party faction) was postponed due to the presenter's absence.
Most Active Speaker
Lauri Laats (from the Centre Party faction) was the most active speaker, presenting the bill and comprehensively answering colleagues’ questions, defending the Centre Party’s proposal in the interests of consumers. His position was oppositional (other).
Aseesimees Arvo Aller
AI Summary
The Riigikogu proceeds to item 11, which is the first reading of Draft Act 621 on amendments to the Law of Obligations Act, initiated by the Estonian Centre Party faction, and the rapporteur is Riigikogu member Lauri Laats.
Aseesimees Arvo Aller
AI Summary
Lauri Laats, a member of the Riigikogu, was called upon to serve as the rapporteur to commence the 11th item on the agenda of the sitting, which was the first reading of Draft Act 621 on amendments to the Law of Obligations Act, initiated by the Estonian Centre Party faction.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
A representative of the Estonian Centre Party faction highlighted that housing affordability is hampered by banks' excessively high loan interest rates and profits, which significantly exceed the European average, and submitted a bill on behalf of the faction to abolish the provision in the Law of Obligations Act that allows banks to demand from the borrower three subsequent months of lost interest upon early repayment of a floating-rate home loan (i.e., switching banks), with the aim of making switching banks cheaper for the consumer and thereby increasing interbank competition to lower interest rates.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that the bill put forward by the Estonian Centre Party faction amends the Law of Obligations Act so that maintaining a home loan and switching banks would be cheaper, and it abolishes the requirement for the forfeiture of three months' interest, thereby promoting competition and a decrease in loan interest rates.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller announced that there were questions and asked Vladimir Arhipov to respond.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker emphasized that mortgages represent the primary financial obligation for young families, and asked the presenter to what extent the bill under discussion contributes to improving housing affordability and creating a stable living environment specifically for those families.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The rapporteur notes that young families predominantly take out housing loans, and asks whether the draft bill will help improve the affordability of their housing and create a stable living environment.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasized that all proposals must be implemented to improve housing affordability for young families, including reducing the notarial costs associated with mortgage transfers, in line with the recommendations of the Bank of Estonia and the Financial Supervision Authority, and introducing state support measures, so that servicing loans and acquiring housing would be more affordable and the demographic situation would improve.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker stressed that improving housing affordability for young families requires a comprehensive package of measures, not just a single legislative amendment. In doing so, they supported the proposals put forward by the Bank of Estonia and the Financial Supervisory Authority aimed at reducing costs, for example, by eliminating notary fees when transferring a mortgage and avoiding repeated property appraisals. Furthermore, in addition to cutting bureaucracy, the state must also offer more substantial support measures, as housing security is crucial for tackling the demographic crisis and boosting the birth rate.
Aseesimees Arvo Aller
AI Summary
The Deputy Chairman invited Vadim Belobrovtsev to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev stated he was surprised by the behavior of the Reform Party members defending the banks, noting that the bill genuinely removes the banks' ability to earn money. He then questioned whether, in our attempt to simplify life for ordinary people, we are actually persecuting major banks.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker, while defending the draft legislation in the committee, expressed astonishment at the behavior of the Reform Party members who immediately jumped to the defense of the major banks, claiming that the bill would strip them of their ability to make money. He concluded with a rhetorical question, asking whether, by making life easier for ordinary people, they were somehow suddenly harassing the big banks.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that the Reform Party has no need to worry about the banks, as they are performing well, and the return on equity is considerably higher than in older European countries. Furthermore, even the Bank of Estonia and the Financial Supervision Authority agree with their proposals, and market participants are already prepared, meaning that if it isn't adopted now, it will soon be signed off by the government.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker urged members of the Reform Party not to worry about the banks, emphasizing that their profits are large and they are managing well. He stressed that market participants—including commercial banks—are already in agreement with the proposals from the Bank of Estonia and the Financial Supervision Authority, meaning these proposals will be adopted by the government sooner or later, irrespective of the Reform Party’s current opposition.
Aseesimees Arvo Aller
AI Summary
Aleksei Yevgrafov was invited to perform.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker commended the positive aspects of the preceding presentation regarding the draft bill, but immediately raised the question of why five members of the Legal Affairs Committee (Anti Haugas, Valdo Randpere, Stig Rästa, Madis Timpson, and Vilja Toomast) voted in favor of rejecting the bill.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov thanks the server and his colleague and highlights the pros of the draft bill, but asks why the members of the Legal Affairs Committee—Anti Haugas, Valdo Randpere, Stig Rästa, Madis Timpson, and Vilja Toomast—voted in favor of rejecting the bill.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker emphasizes that, as a member of the Bank of Estonia Supervisory Board, they possess more information than others, and considers the opposition's resistance to a reasonable, market-supported measure irrational, arguing that this stems either from a lack of information or political obstructionism. This obstructionism prevents them from supporting a proposal put forward by the opposition, even if it offers relief to families, while simultaneously ruling out any need to protect the banks given their 1.1 billion euro profit.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stresses that if the information is incomplete, one should not accept a reasonable proposal, and he criticizes the opposition's resulting resistance and their defense of the banks, even though the loan relief measures would help many families and the banks' profit last year was 1.1 billion.
Aseesimees Arvo Aller
AI Summary
Peeter Ernits is invited to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asks what is preventing the adoption of the current bill, stressing that there are intelligent people in the Reform Party and also in Eesti 200, and that the future and families of the Estonian people should be important to everyone. He asks what the real obstacle is, even though party flags may be flying.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker directly questioned what was obstructing the passage of this sensible legislative package, which is crucial for the future of the Estonian people. He expressed astonishment that, given the presence of intelligent individuals within the Reform Party and Eesti 200, the resistance must be driven by partisan interests rather than any genuine substantive flaw or unreasonableness in the package itself.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
As a member of the Riigikogu, Lauri Laats called upon everyone in the opposition and the coalition to jointly support a simple and feasible amendment to the Law of Obligations Act in order to alleviate the demographic crisis and ensure the bill proceeds to the second reading.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker emphasizes that the submitted bill, which introduces amendments to the Law of Obligations Act, is simple and easily implementable, and its adoption is a vital step toward alleviating the demographic crisis and increasing the population. Simultaneously, the speaker criticizes the government for its passivity on this fundamental issue and calls on all members of the Riigikogu to support the bill so that it can proceed to the second reading.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart thanked the rapporteur and the bill itself, stressing the necessity of impact assessments. She noted that the government typically doesn't carry out analyses of this scope and asked how many such assessments have actually been conducted, particularly regarding tax amendments.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker criticized the stance of the Government of the Republic, which faults the draft bill for lacking a thorough impact analysis on consumers and the real estate market, highlighting that the government itself rarely conducts such analyses. He then asked the rapporteur directly how many draft bills, including those concerning tax hikes, the government has actually subjected to major impact assessments.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the fact that the draft legislation and tax increases were adopted hastily, completely lacking any prior analysis, forcing the Ministry of Finance to subsequently commission a separate study on their impact.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker sharply criticized the government's rush to pass the tax hikes, emphasizing that they were adopted without any analysis whatsoever. This is evidenced by the Ministry of Finance’s August procurement tender, which commissions an analysis of the economic impact of the already implemented package of taxes, thereby demonstrating that the minister lacks a genuine understanding of their effect on the economy and people’s livelihoods. Furthermore, he accused Minister Jürgen Ligi of having a cynical attitude toward the entrepreneurs who sustain the country.
Aseesimees Arvo Aller
AI Summary
The presiding officer concluded the round of questions, specified that they would proceed with the first reading of Draft Bill 621 of the Law of Obligations Act, and subsequently gave the floor to Andre Hanimägi, a member of the Legal Affairs Committee, to present the lead committee’s discussion.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller announced that the first reading of Draft Act 621 concerning the Law of Obligations Act remains under deliberation and is now being forwarded for discussion by the lead committee, with Andre Hanimägi, a member of the Legal Affairs Committee, serving as the rapporteur.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The representative of the leading committee provided an overview of the Legal Affairs Committee's debate on the draft bill, during which the government representative highlighted deficiencies in the impact assessment and there was a discussion regarding what constitutes the "fair and objective compensation" stemming from the directive; in the final vote, the committee decided, 5 votes in favor and 4 against, to propose rejecting the bill.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi presented the draft bill to the Legal Affairs Committee, where questions were raised regarding the lack of an impact assessment and fair compensation (specifically, whether three months or not). The committee subsequently decided to reject the bill and place it on the plenary session agenda, where he has been appointed as the representative of the lead committee.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited everyone to ask questions and addressed Peeter Ernits, saying, "Please."
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker addressed the presenter, requesting clarification on the nature of the ideological difference and the motives behind the specific 5:4 division, while simultaneously stressing that the future and the flag of the Estonian nation should be one and the same.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asks what the ideological difference was that necessitated the unity of the Estonian people's future and flag, and requests clarification regarding the ideological motives and the 5:4 division.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker described a discussion concerning banking regulation, where they contrasted the banks' legitimate expectation to charge three months' interest with the position that banks would not suffer by only receiving one month's interest, especially since borrowers are the ones who are more financially constrained. They emphasized that the issue ultimately came down to balancing the role of the banks against the financial needs of the borrowers.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The discussion centered on whether to implement a change that would impact the interest claim stemming from banks' legitimate expectations (for example, three months). It was noted that banks are partners to the state and its citizens, but borrowers are likely to feel the weight of this burden more significantly.
Aseesimees Arvo Aller
AI Summary
This is a brief request addressed to Aleksei Yevgrafov.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
At the meeting of the Legal Affairs Committee, the representative of the Ministry of Finance, Mirjam Rannula, responded to a question posed by Madis Timpson regarding solutions addressing the concerns of notaries by stating that she would have to defer the answer. Consequently, the rapporteur was asked whether the esteemed member of the Legal Affairs Committee had received a response to his question.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The rapporteur notes that there is still no answer to the question raised regarding solutions for notarial issues, and it is asked whether the member of the Legal Committee finally received a response.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi pointed out that the committee minutes failed to provide an answer, and the issue of an impact analysis was raised. He stressed that such a thorough analysis is not even expected from the Riigikogu factions, and the government has no known plan to commission one, despite the fact that the topic concerns financial stability and banks.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speaker highlighted that while the commission's minutes recorded the failure to provide a response, the debate primarily centered on the absence of an impact assessment. He stressed that it is not feasible for a member of the Riigikogu to produce such a comprehensive analysis. He then asked the government if they had commissioned an impact assessment concerning financial stability, to which they replied that the government had no knowledge of such an assessment being ordered.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes the need for state intervention in regulating loan terms, particularly the three-month interest requirement and the fine print conditions, citing the proposals made by the Bank of Estonia and the Financial Supervision Authority, as well as the consent of market participants.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker thanked the presenter for the constructive message but pointed out that, contrary to the assumptions of a free market, mortgage borrowers actually have no choice or room for negotiation within the banking sector. This is why the requirement for three months' interest is hidden within the standard terms and conditions. Consequently, the state must intervene with a proposal that is also supported by the Bank of Estonia and the Financial Supervision Authority.
Aseesimees Arvo Aller
AI Summary
The moderator gave a short and precise cue for the next speaker to begin their presentation, simply saying, "Your time!"
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker confirmed that the market participants were agreeable, and then turned to the audience, asking how they assessed the situation.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speech examined the ideological divide between honoring contracts and state intervention, emphasizing that while agreements between the bank and the borrower must be respected, the Riigikogu must intervene and make the best decisions for the people.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The **speaker** addressed the ideological opposition, where, on the one hand, emphasis was placed on respecting contracts between banks and borrowers and on state non-intervention. But on the other hand, he/she stressed that the market economy does not solve all vital issues, and the Riigikogu (Estonian Parliament) has a duty to stand up for the people of Estonia and make the decisions that are best for them, especially in situations where understanding the fine print is complicated.
Aseesimees Arvo Aller
AI Summary
He concludes the negotiations, proposes to the responsible committee that draft bill 621 be rejected at the first reading, and calls the Riigikogu members to a vote.
Aseesimees Arvo Aller
AI Summary
The Chair closed the debate, as no requests to speak had been submitted, and then proceeded to vote on the lead committee's proposal to reject Bill 621 at first reading.
Aseesimees Arvo Aller
AI Summary
The motion was supported by 47 votes in favor, 13 against, and 0 abstentions, but the draft bill was rejected and is dropped from the legislative process; the next item scheduled for consideration was the first reading of draft bill 626, submitted by the Centre Party faction, concerning amendments to the Motor Vehicle Tax Act, but the proceedings could not continue due to the absence of the rapporteur, and the session ended.
Aseesimees Arvo Aller
AI Summary
The chairman initially announced support for one proposal and the rejection of the draft bill. Subsequently, however, he was forced to postpone the next item on the agenda (the motor vehicle tax bill initiated by the Centre Party) due to the absence of the rapporteur, Andrei Korobeinik, after which the meeting was declared closed because the agenda had been exhausted.