Bank of Estonia optimistic on Elering, Eesti Energia bond purchase
Despite the European Central Bank stopping Estonia from buying bonds of state-owned companies such as Elering and Eesti Energia, Bank of Estonia President Ardo Hansson said the topic is still in the air.
“There are fewer questions concerning Elering as it is a monopoly and the market can not be distorted. The question over Eesti Energia is that it is in competition with private sector companies and also with other European businesses and we have to guarantee that adding it to the list [of companies which sell bonds to Estonia] will not give it unfair competitive advantages,” Hansson said.
Estonia must spend three billion euros on bonds by September 2016 as part of a European Central Bank quantitative easing program. As Estonia itself does not issue bonds it has been forced to buy bonds in international organizations such the European Investment Bank.
The European Central Bank drew up a list of companies able to participate in the program by issuing bonds. No Estonian companies were on that list even after Wednesday's review.