The Ministry of Finance of Moldova calls for active investment in government securities that bring good profits.
As noted in the report of the financial department, government securities are one of the most reliable financial instruments through which the state borrows funds from citizens. These loans can be short-term (up to 1 year - treasury bills) and long-term (from 1 year - government bonds) with interest payments. At the same time, investing in government securities brings a number of advantages. In particular, government securities are low-risk financial products, since the return of funds invested in them is guaranteed by the state. Government bonds are a liquid financial instrument that can be sold at any time. Long-term government securities are very attractive from the point of view of earnings, as they offer a favorable interest rate. Government securities are accessible instruments for both individuals and legal entities. The Ministry of Finance noted that on the government securities market, from September 27, 2023, there was a successful issue of 10-year bonds with a fixed annual interest rate of 8.25%, which gives investors the opportunity to explore the possibilities of lending for a longer period. The annual interest rate on long-term government securities is: for 2 years - 5.5% (for comparison, the interest rate on bank deposits from 1 to 2 years is 4.9%); for 5 years – 6.5% (maximum 6.12% for bank deposits from 2 to 5 years). Thus, annual interest rates mean that long-term government securities are more attractive in terms of profit. The Ministry of Finance emphasizes that government securities are very safe financial instruments, since they are fully guaranteed by the state. Since the creation of the government securities market, the government has never withheld fees for redemption of government securities or interest. Moreover, starting with the issuance of treasury bonds in March 1995 and throughout the entire period of operation of the government securities market, effective measures were taken in the development of this market in Moldova, based on the regularity and transparency of issues, as well as maintaining an appropriate level of liquidity. The state also seeks to strengthen communication with government securities market participants in order to systematically assess investment needs at the market level and expectations regarding its conditions. “The financial market offers various investment opportunities, but before you decide how you want to invest your money, you need to determine what your main financial goals are and also assess the risks. It is important to know what opportunities each financial instrument offers and make the most appropriate choice based on your personal needs,” the Ministry of Finance noted, suggesting that for more detailed information on trading government securities, read the Investor’s Guide to Government Securities. // 24.01.2024 - InfoMarket.
