New bill to open up Estonian businesses to investment funds
Government today approved a bill which will increase the proportion which Estonian pension funds can invest in companies not listed on stock markets from 10 to 30 percent of the fund.
Pension fund will have more freedom to invest in larger real estate and infrastructure projects and in precious metals.
The bill, if passed, will also allow pension funds to buy up more than 10 percent of any company, and buy a controlling share. Neither are currently allowed.
The bill is expected to enter force on January 1, if passed.
The changes could enliven the economy as very few Estonian companies are listed on the stock market, forcing pension funds to look abroad.