TALLINN, Aug 04, BNS – According to the report on the stabilization reserve fund submitted by the minister of finance to the Estonian government on Thursday, the volume of the reserve has decreased by 1.3 million euros compared to the end of 2021; as at the end of June, the reserve was valued at 426.3 million euros.

In the second quarter, the reserve received 900,000 euros in a profit allocation from the central bank.

Last year, the reserve also received 900,000 euros, the majority of which was the profit allocation of the central bank for 2020, the government's communications office said.

According to the State Budget Act, the stabilization reserve is a financial reserve formed from the state funds in order to finance expenditure, investments and financing transactions, the objective of which is the reduction of economic risks; the prevention or mitigation of socio-economic crises; the resolution or prevention of an emergency situation, a state of emergency, a state of war or other extraordinary situation or a crisis with material effect, or performance of the obligations provided for in a collective self-defense agreement; the resolution and prevention of a financial crisis that may cause difficulties related to liquidity or solvency for the financial institutions or significant disruptions in the payment and settlement systems.

The Ministry of Finance must, not later than on the tenth working day of each quarter, submit a report to the National Audit Office, the government and the finance committee of the Riigikogu on the composition and value of the assets of the stabilization reserve fund as at the last working day of the previous quarter.

Tallinn newsroom, +372 533 38403, majandus@bns.ee

Baltic News Service