Bank of Estonia authorized to buy Elering bonds ({{commentsTotal}})

Source: Photo: Postimees/Scanpix

The European Central Bank gave the Bank of Estonia permission to buy bonds of state-owned power transmission system operator Elering.

The exception was made as the Bank of Estonia is unable to buy Estonian government bonds, as there are none available. The bank also wished to buy shares of the much larger Eesti Energia, but that request was rejected as the company, unlike Elering, competes against private businesses.

No purchase of Elering bonds has been made yet and much will depend on the price and availability before the Bank of Estonia will move for Elering bonds. The sums in question will be small in any case, as central banks are only allowed to buy a fourth of any bond emission, that figure calculates to 56 million euros for Elering.

The Bank of Estonia is obliged to buy around 120 million euros worth of bonds each month as part of the European Central Bank's quantitative easing program. Estonia's total will be three billion euros by September 2016. So far, the Bank of Estonia has been forced to purchase bonds in international organizations such as the European Investment Bank.

Editor: J.M. Laats



Opinion
Easter Monday a public holiday? But you're forgetting productionEaster Monday a public holiday? But you're forgetting production
Estonia’s Easter Monday time loop: Discussing an additional day off

Every year, Estonia reliably asks itself the question whether or not Easter Monday should be made a public holiday. Opinions differ. While one side emphasizes the importance of family time, the other thinks an additional day off would threaten economic growth.

Minister of Social Protection Kaia Iva (IRL).Minister of Social Protection Kaia Iva (IRL).
Samost: Kaia Iva’s charisma could help IRL out of long-term low

In Sunday’s “Samost ja Rumm” radio debate show, editor-in-chief of ERR’s online news, Anvar Samost, and journalist and former politician Hannes Rumm discussed the potential and actual candidates for the chairmanship of the Pro Patria and Res Publica Union (IRL). At the time of the broadcast, Helir-Valdor Seeder had not yet made his intention to run public.