Continuation of the first reading of the draft law on the sharing of credit information (652 SE)
Session: 15th Riigikogu, 5th session, plenary session
Date: 2025-06-18 17:10
Participating Politicians:
Total Speeches: 29
Membership: 15
Agenda Duration: 23m
AI Summaries: 29/29 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu continued the first reading of Draft Act 652 on the sharing of credit information, initiated by the Government of the Republic. Minister of Finance Jürgen Ligi answered questions from Riigikogu members. The discussion focused mainly on the timeline for creating a positive credit register, the growth in the volume of quick loans and its social consequences, and the regulation of the activities of debt collection agencies. Vadim Belobrovtsev raised the question of the conflict between data centralization and the principle of e-state decentralization, to which the minister replied that only credit data would be centralized. Reili Rand and Heljo Pikhof expressed concern over the late entry into force of the register (2028), regarding which the minister promised to consult with technical staff about the possibility of acceleration. Ligi emphasized that the state should not create the register, as it is a matter for the private sector. During the negotiations, Lauri Laats and Heljo Pikhof addressed the growth of quick loans (which exceeds the European average) and its connection to the deterioration of people's financial well-being. Minister Ligi linked the growth of the quick loan business, among other things, to the dismantling of the second pillar pension scheme. Maris Lauri, representing the Finance Committee, presented the committee's decisions, confirming that debt collection agencies would not be included in the register and that the committee proposed concluding the first reading.
Decisions Made 2
The Finance Committee unanimously proposed adding Bill 652 to the agenda of the Riigikogu plenary session on June 17 and concluding its first reading.
The first reading of Draft Bill 652 was concluded. The deadline for submitting amendments was set for July 4th at 4:00 PM.
Most Active Speaker
Lauri Laats (of the Center Party faction) was an active speaker who used the time allocated for debate to sharply criticize the government's economic policy. He argued that the rapid growth in the volume of quick loans (12% in 2023) is directly linked to the deterioration of people's livelihoods, which he attributed to the government's tax increases and policy decisions. His position is oppositional (left/center).
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu continues the first reading of Draft Act 652 on the Sharing of Credit Information, initiated by the Government of the Republic, which was left unfinished at yesterday's sitting. Furthermore, Minister of Finance Jürgen Ligi will answer questions from Riigikogu members; Vadim Belobrovtsev, Reili Rand, Lauri Laats, and Heljo Pikhof are registered as the questioners.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev stated that a key principle of the Estonian digital state is the importance of data being located in different databases and not being concentrated into a single repository, from which all data could be extracted simultaneously. He then asked whether the draft legislation concerning the sharing of credit information contradicts this principle.
Rahandusminister Jürgen Ligi
AI Summary
Credit information is entered into the credit register, but not all the data is consolidated in one place.
Aseesimees Toomas Kivimägi
AI Summary
Reili Rand was called upon to speak during the address.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand voiced concern regarding the delayed implementation of the credit register. She inquired whether the state could expedite its entry into force by establishing the register itself, and what other supplementary measures—such as setting a cap on loans or imposing advertising restrictions—the government might employ to prevent citizens from falling into debt bondage.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi recommended that the Riigikogu seriously discuss the ceiling for housing loans, where the limit for the ratio of monthly payments could be 50% (the banking association wants 60%), but not all banks are in agreement on this, and he is doubtful about it; the state should not create or finance such a register because it is related to the private sector, and the register's initial contribution should come from the institution's capital, which, similar to the central register of securities, is the work of the private sector.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invites Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats asked the minister whether the ministry had submitted an overview of the current state of the lending market, whether the reasons behind the increased volume of quick loans had been discussed, and what regulations should be put in place to curb this growth, stressing that consumer loans are accessible online around the clock.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the growth of quick loans reflects the inadequacy of financial literacy and the impact of dismantling the second pillar, and he stressed that a loan does not replace income. He added that financial education must be increased, teaching people that earning money is the key and that expenditures must be restricted.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirmed that the Ministry of Finance constantly monitors the loan market, but he categorically rejected the assertion that the state should blame itself for people taking out loans due to their inability to cope financially. He stressed that a loan is not a solution, and people should instead rely on the social welfare system or increase their income. He highlighted that the main political impetus for the growth of the quick loan business was the dismantling of the second pension pillar, which provided lenders with the opportunity to issue new loans, and he urged people to understand that borrowing is not a substitute for income.
Aseesimees Toomas Kivimägi
AI Summary
Heljo Pikhof is requested to speak in the address.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Heljo Pikhof recalled the 2022 public hearing of the Legal Affairs Committee concerning the quick loan market, where a consensus was reached that debt collection agencies and lenders require effective state supervision. The reasoning was that, otherwise, they impose expensive procedural costs and late fees on debtors, thereby creating the risk of debt bondage. She then asked whether the problem has been solved today, specifically whether debt collection firms are now required to obtain operating licenses and whether they have been placed under state supervision.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi thanked.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Heljo Pikhof asks whether this supervisory authority is the Financial Supervision Authority.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that debt collection agencies are not lenders and thus are not subject to the same supervision as actual lenders. He expressed some skepticism regarding regulations, but noted that court practice sets reasonable limits on the calculation of penalty interest. Furthermore, although small banks and pawnshops operating in the market often impose late fees on clients, when loans are capitalized, a new contract is drawn up and the interest calculation begins anew.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Heljo Pikhof emphasizes that debt collection firms and lenders require more effective supervision, and asks whether a positive credit register could come into force earlier than 2028, considering the growth in the number of debtors from 72,000 to over 100,000.
Aseesimees Toomas Kivimägi
AI Summary
The name of Heljo Pikhof was mentioned in the speech.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi corrected the previous speaker's claim regarding the classification of debt collection firms as lenders, expressed support for the draft legislation, and promised to consult with technical staff to determine whether the implementation deadline for the bill and the related procurements could be accelerated despite the risk of legal challenge.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi expressed his gratitude for the support given to this draft bill, confirmed that collection agencies are lenders, and promised that between the two readings he would take this issue up with technical staff and investigate whether procurements and the entire process can be expedited, while emphasizing that procurements always carry risk.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi expresses his thanks and announces that Maris Lauri, a member of the Finance Committee, will present the discussion and the decisions reached by the Steering Committee.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri introduced Draft Bill 652. During the subsequent discussion, topics addressed included the similarity between the proposed loan prohibition and the existing gambling prohibition, the establishment of a loan register, and the impact on consumer credit. The committee then unanimously decided to add the bill to the plenary session agenda for June 17th, conclude the first reading, and designate Lauri as the representative for the lead committee.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri provided an overview of the Finance Committee's consensus discussion held prior to the first reading of Draft Bill 652. The discussion primarily addressed the similarity between imposing a lending prohibition and a gambling prohibition, the decision to abandon the inclusion of debt collection firms in the register, and the debate surrounding the maximum limit for loan burden. Following this, it was decided to place the draft bill on the plenary agenda for further proceedings and to appoint Maris Lauri as the representative of the lead committee.
Aseesimees Toomas Kivimägi
AI Summary
The speaker stated that there were no questions, but Heljo Pikhof nonetheless posed a question to the presiding officer, and finally, Maris was thanked.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
In the speech, it is said that I had a question.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that there were two questions, both of which had been submitted by Jürgen Ligi, opened the debate, and introduced Lauri Laats on behalf of the Estonian Centre Party faction.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stresses that the volume of quick loans is increasing because people’s financial situation is deteriorating, noting that these are high-interest consumer loans that lead to debt bondage. The solution, he argues, is first and foremost to improve people's economic well-being and halt the increasing availability of quick loans, a trend he connects directly to government decisions.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the audience and gives the floor to Heljo Pikhof on behalf of the Social Democratic Party faction.
Heljo Pikhof
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Heljo Pikhof stated before the Riigikogu that despite state adjustments and adherence to a conservative lending policy, the trap of quick and consumer loans has once again become widespread, and the debt burden has increased. Since 2016, the number of consumer loans has doubled. Estonia now has over 100,000 debtors subject to enforcement proceedings and approximately 413,000 debts. The average debt amount is about 10,000 euros (with a third owing 1,000–5,000 euros, and some owing over 50,000 euros), which results in socio-economic problems and hardship, and in some cases, even fleeing the country.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi concluded the debate, announced that he would no longer accept questions or procedural motions, and, upon the proposal of the leading committee, declared the first reading of Bill 652 closed. The deadline for submitting amendments is July 4th at 16:00.