Despite of promises that Estonia's entry to the eurozone will bring down risk margins of housing loans, it has not happened. Some claim banks have kept risk margins on housing loans unchanged since they want to earn back profits they lost during the crisis, writes Äripäev.
For instance, until 2009 the difference between risk margins in Estonia and Finland had been moving in sync. However, when the economic crisis started, Estonian risk margins skyrocketed and last December were 1.92% and 0.93%, respectively.
Economist Andres Arrak says bluntly that margins in Estonia are unlikely to come down any time soon since there is no real competition between banks in Estonia.
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Banks in Estonia keep risk margins high in spite of euro