Thu, 26 Nov 1998: Compensation fund dips into the red…



The fund was founded by the state to redeem compensation vouchers. Estonian taxpayers receive compensation vouchers according to years of employment. The vouchers are meant to compensate for losses incurred after the Soviet Union collapsed and citizens may use them to privatize their apartments or to sell back to the state.The fund is also allowed to carry out business deals, which has led to the current projected losses. Forty-two percent of the fund's nine-month loss comes from losses on decreasing prices of shares on the stock exchange, and 29 percent come from unprofitable investments.The nine-month loss also includes the 80 million kroons the fund invested in a dubious deal with Uhispank, which the latter now denies. If the court prove... Read the rest of this entry »

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