Banks, Estonia, Financial Services, Investments

International Internet Magazine. Baltic States news & analytics Friday, 19.04.2024, 08:08

Estonian stabilisation reserve increased by 1.4% in June y-o-y

BC, Tallinn, 31.07.2015.Print version
As of the end of June 2015, the Estonian stabilisation reserve volume was 373 million EUR in market value; the volume of the reserve grew by 5 million EUR or 1.4% in a year, LETA/Postimees Online reports.

In the second quarter, the value of the stabilisation reserve assets grew by 0.9% and in the first six months of the year, the yield was –0.08%; the yield is suppressed by the low yields of euro area bonds, finance ministry said.

 

Stabilisation reserve means are mainly invested in government bonds of low credit risk EU states and bonds and deposits of credit institutions. Bonds of Belgian government, Dutch Rabobank and French government form the biggest part of the investment.

 

In the second quarter, 4.3 million EUR was paid into the reserve fund based on laws. Most of it was Eesti Pank dividends.

 

The reserve was created in 1997 with the volume of 44.8 mln euros to hedge economic risks and guarantee stability of investments and structural changes aiming to create long-term social benefits. The reserve can also be used for military readiness or mobilisation.





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