The Finance Ministry of Moldova will issue for the first time 10-year government bonds, which are to be placed on September 27.
The Finance Ministry announced this, noting that the development of the domestic market of government securities (GS) is a long-term strategic objective of the Finance Ministry, envisaged by the Medium-Term Debt Management Program, and in order to achieve this objective, one of the actions of the Finance Ministry will be to increase the maturity of government securities issued on the domestic market. The ministry emphasizes that government securities, from an investor’s point of view - individual or legal entity, can be considered as an alternative to savings to other types of investments, such as bank deposits and savings accounts, shares, purchase of real estate, etc. Risks in these investments are very low, almost zero, and the money can be returned at any time by selling GS on the secondary market. In addition, currently the interest rates of GS are quite attractive: 7.07% for 364 days, 8.00% for 7 years and 8.25% for 10-year government bonds, which are supposed to be offered for the first time on September 27. The Ministry of Finance emphasizes that the issuance of 10-year government bonds will be an important step towards completing the yield curve along with the 2-, 3-, 5- and 7-year government bonds currently issued by the Ministry of Finance. In addition, it will promote the development of the life insurance market and contribute to the national economic development plan. Government securities are among the safest forms of investment, as they enjoy the full guarantee of the state, both in terms of the capital invested and the interest associated with it. Individuals and legal entities, residents and non-residents, may participate in auctions for the placement of government securities only through primary dealer banks. Government bonds are long-term government securities (from 1 year and above) issued with floating or fixed interest rates. Interest (coupons) on government bonds is paid periodically. Government bonds may be sold at a discount, at par value or at a premium and redeemed at maturity at par value. It should be noted that the issue of 7-year government bonds in Moldova was launched on April 21, 2021. // 22.09.2023 - InfoMarket.
