Transactions with long-term government securities will be carried out on Moldova’s Stock Exchange for the first time.
The Ministry of Finance reported this, noting that it resumes issuance of long-term government securities (GS), and investors will be able to buy government bonds (GS) with maturities of 2, 3, 5 and 7 years at the auction on May 24. At the same time, in order to develop the capital market the Ministry of Finance will allow transactions with long-term government securities on the Stock Exchange of Moldova. The Ministry noted that investors will have the opportunity to invest available resources in government bonds at rates of 8% per annum (2 years maturity), 8.25% (3 years maturity), 8.5% (5 years maturity) and 9% (7 years maturity). The rate offered by the Treasury Department is significantly more favorable compared to the inflation rate, which, according to the latest round of forecasts, will fall to 3.9% in the second quarter of 2024. Investors can buy relevant government bonds either through primary dealers or brokers in the secondary market, thereby directly supporting government-funded projects: repair and construction of roads, kindergartens, schools, hospitals, payment of salaries and pensions and other activities of social importance. The list of state bonds admitted to trading and the open positions will be published by the Moldovan Stock Exchange on its official website. For the investment attractiveness of state securities traded on the regulated market, the National Financial Market Commission (CNPF) will not collect fees and the Moldovan Stock Exchange has reduced by 50% the fees charged by the market operator. This action is the result of joint efforts of the Ministry of Finance, CNPF, the Stock Exchange of Moldova and the National Bank of Moldova. The Ministry of Finance emphasized that state securities are one of the safest forms of investment, as they are fully guaranteed by the state. According to the legislation, payments to redeem the government securities and to pay interest on them are carried out in priority to other payments. CNPF officials noted that the sale of long-term government securities at the Stock Exchange could be a catalyst for the development of domestic capital markets and increase investors' confidence in this sector, with potential buyers having the possibility to invest their financial resources more efficiently. //23.05.2023 - InfoMarket.
