In Q2 2023, Estonia’s Stabilization Reserve Fund swelled by €1.7 million, reaching a total of €428.6 million. Unlike 2022’s €900,000 contribution, 2023 has seen no additions yet, primarily the last year’s infusion came from the Bank of Estonia’s 2021 profit. Most of the fund (69.9%) is allocated to EU government bonds with low credit risk and central bank account balances. The remainder is invested in credit institution bonds (27.9%) and corporate bonds (2.2%), largely held in Belgium, France, and Austria. A slim majority (72.1%) of total volume is invested in high-grade issuers and the central bank, earning a Q2 2023 return of 1.56%, and a half-year return of 2.19%. Established in 1997, this Reserve Fund serves as a safety net during crises, funded from various sources including Bank of Estonia profits and surplus public cash flow.
Source: news.err.ee
