International Internet Magazine. Baltic States news & analytics
Thursday, 28.05.2015, 04:57
Stabilization reserve volume in Estonia fell by 2.5 bln kroons in 2009
In the course of the year, the reserve fell by 2.5 billion kroons.
According to the Ministry, the decline in the reserve volume was caused by the decision to use half of the stabilization reserve funds (3.5 billion kroons). Without this decision, the volume of the reserve’s market value would have increased by a billion kroons.
On the basis of the State Budget Act, 810.8 million kroons was collected in the reserve during the year 2009.
In investing the reserve’s financial resources, the conservative investment strategy approved by the reserve’s supervisory board is used as guidelines. The objective is to mostly guarantee the stability of the value of the financial reserves and the high liquidity of the assets.
Bonds form 89.9% of the stabilization reserve’s investments, savings deposits form 10.1%.
The stabilization reserve was created in 1997 and its volume then was 701.6 million kroons. It is a budgetary policy measure for decreasing risks in the general economy.