Bank of Estonia (Eesti Pank) made a loss of €157 million on investments in 2022, but covered the loss with funds previously accumulated and ended the year with a balance of zero.This has no effect on the public finances: the losses could be covered for years if necessary, and the central bank anticipates a profit this year.
According to a deputy governor of Eesti Pank, Ülo Kaasik, the central bank was also impacted by the unexpected hike in interest rates.
“Last year was truly a once-in-a-century occurrence in which both bond and equity investors suffered significant losses,” Kaasik told ERR.
This is why, Kaasik said, the Bank of Estonia has three bulwarks: earlier year unrealized income comes first, followed by risk provisions set aside from earlier gains, and ultimately equity.
Read more: ERR.EE
