Estonia's public sector debt up almost 19% in a year, reaching 26% of GDP
Estonia's consolidated public sector debt stood at about €11.2 billion at the end of the second quarter of 2026, according to Eesti Pank data. It rose 18.9% over the year, and its ratio to GDP climbed from 23% to 26%.
The consolidated debt of Estonia's public sector reached roughly €11.2 billion at the end of the second quarter of 2026. That is 18.9% more than a year earlier, and the debt-to-GDP ratio rose from 23% to 26% over the same period, according to data from Eesti Pank, the country's central bank.
Quarterly increase
Compared with the first quarter, public sector debt grew by 7% in the second quarter. One of the reasons was the issuance of government bonds worth one billion euros.
Who holds the debt
Most of the debt is owed to foreign creditors. At the end of June, loans from abroad amounted to about €9.04 billion, while debt to Estonian credit institutions was €1.75 billion. The central bank's explanation states that foreign creditors account for 79% of the state's debt and domestic banks for 13%.
In the second quarter, the state raised €312 million in net financing from other sectors of the economy, mainly from abroad. Local governments, meanwhile, were net providers of financing.
Net financial assets down
At the same time, the public sector's net financial assets, meaning the difference between financial assets and liabilities, declined. At the end of June they stood at €524.8 million, compared with €1.26 billion a year earlier. Over the year the indicator therefore fell by about €733 million, or 58%.
The ratio of net financial assets to GDP over the last four quarters decreased from 3.1% to 1.2% within a year.
