The country's stabilization reserve decreased by 3 million euros

According to the law, the purpose of the management of the stabilization reserve is to ensure the preservation and liquidity of the assets and to earn maximum income within the established restrictions, while in today's market conditions the cost of managing the assets is to be minimized, according to the report on the assets of the reserve.

As of the end of the third quarter, the reserve's funds are mainly invested in European Union government bonds with very low credit risk, which make up 69.9 percent of placements. 27.9 percent are placed in credit institution bonds and account balances and 2.2 percent in corporate bonds.

Belgium, Bpifrance Financement and French bonds make up the largest share of placements, 19.5, 17.6 and 12.4 percent, respectively. Bonds make up 99.7 percent of the reserve's investments and account balance 0.3 percent. In order to ensure the preservation of reserve funds, 85.7 percent of the reserve volume is made up of investments in issuers with the highest credit rating.

According to the report, euro area bond yields have risen significantly in the third quarter. The main reason is high inflation, which has led central banks to raise key interest rates to curb inflation. While bond prices rose in July due to fears of an economic recession, bond prices fell in August and September.

The reserve's return for the previous quarter was -2.81 percent, and the standard portfolio's return for the corresponding period was -2.15 percent. The yield of the reserve since the beginning of the year as of the end of September 2022 was -2.39 percent, the yield of the standard portfolio for the corresponding period was -1.34 percent.

During 2022, Eesti Pank's 2021 profit allocation in the amount of 900,000 euros has been received into the reserve. In 2021, the reserve also received 900,000 million euros, the majority of which was the 2020 profit allocation of Eesti Pank.