The Ministry of Finance is preparing to launch a new round of national bonds, with the aim of providing citizens with an opportunity to invest in state securities. According to Andrej Plenković, president of the HDZ party, this initiative was announced back in March.
Over the years, there has been a growing interest among citizens in investing in national bonds and treasury bills, despite an increase in household deposits in domestic banks. With interest rates on deposits offering up to 2.5%, the potential interest rates on bonds are expected to be higher, possibly around 3.4-3.5%.
While specifics about the new bond issue are still unclear, it is likely that those who invested in a three-month national treasury in February will receive their returns by May 30. However, concerns have been raised about the timing of this new issuance, particularly if it occurs under a technical government, as it may impact the strategies of the incoming government.
Citizens have already lent the state approximately 3.3 billion euros through national bonds, representing about 6% of the total public debt. This new bond issue is expected to increase the share of public debt held by citizens by the end of May.
The government’s decision to issue new national bonds is seen as a positive development for investors looking for higher returns on their investments. It also provides an opportunity for citizens to diversify their investment portfolios and reduce their reliance on traditional savings accounts.
The Ministry of Finance has not yet announced any details regarding the amount or terms of the new bond issue. However, experts predict that interest rates on bonds could be higher than those offered on deposits.
Despite these positive aspects, some investors have expressed concerns about investing in national bonds during a time when political instability is high. There are also fears that investing in such securities could have negative consequences for future generations.
In conclusion, while there are some risks associated with investing in national bonds, they remain an attractive option for investors looking for higher returns on their investments. As long as there are no significant changes in political or economic conditions over the next few months, this latest bond issue is likely to garner significant interest from both local and international investors alike.
Overall, this new round of national bonds represents another step towards increasing citizen participation and engagement in managing public finances. It also reflects a growing trend towards greater transparency and accountability from governments around the world when it comes to managing public debt and financial policies.