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Estonian Banks Seek to Raise Loan Margins, Postimees Reports

Estonian banks should continue raising loan margins as lenders have yet to pass on the full cost of higher borrowing costs, Postimees reported, citing Riho Unt, the head of the local unit of SEB AB.

Average loan margin for individuals and companies has risen 0.6 percentage points compared with a year earlier, Postimees said. Bank borrowing costs have increased by more than one percentage point.

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