International Internet Magazine. Baltic States news & analytics
Wednesday, 19.06.2013, 00:37
Estonian stabilisation reserve increased by 14 mln euros in 2012
The volume of the reserve grew by 1.5 million EUR in market value in the fourth quarter of 2012 as compared to the third quarter and by 14 million EUR in a year, said the finance ministry.
In the fourth quarter, 1.1 million EUR was paid into the fund based on laws; in a year, 10.7 million EUR was paid.
The stabilisation fund yield was 0.58% in the fourth quarter and 0.99% in a year.
Stabilisation reserve means are mainly invested in bonds of low credit risk EU states (68.8%) and bonds and deposits of credit institutions (31.2%). The biggest share is in government bonds of Holland (19.2%) and Belgium (16.8%) and a deposit in Nordea (14.2%).
The reserve was created in 1997 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.