Bank of Estonia unable to buy Elering, Eesti Energia bonds ({{commentsTotal}})

A promotional photo of the Auvere shale oil plant
A promotional photo of the Auvere shale oil plant Source: Courtesy of Eesti Energia

The Bank of Estonia did not receive permission from the European Central Bank to buy bonds of state-owned companies Elering and Eesti Energia.

Estonia is the only EU nation not to issue state bonds, which means the nation is having to look abroad to spend its share of the European Central Bank's quantitative easing program. Estonia's part will amount to three billion euros by September 2016.

The Central Bank drew up an initial list of international organizations of which member states may buy bonds of, but Elering and Eesti Energia did not make it on the list. That list was updated on Wednesday, but Elering and Eesti Energia were not included.

The Bank of Estonia said it will continue to work towards being able to buy bonds of the two Estonian companies.

Elering is Estonia's power transmission system operator and Eesti Energia produces and sells electricity.

It is unclear what the two companies would use the additional loans for. New Eesti Energia CEO Hando Sutter said he will tone down investments while Elering recently said it has now completed a five-year, 450-million-euro investment phase.

Editor: J.M. Laats