
Transactions in long-term government securities will be conducted on the Stock Exchange.
In connection with the decision to abolish the fee/commission for transactions on the regulated market or multilateral trading system with long-term government securities, the National Financial Market Commission (CNPF) decided to provide details of this financial instrument. It is reported that the long-term government securities will be traded on the stock exchange for the first time, so the introduced exemptions are designed to stimulate the domestic capital market and attract investment to this market. CNPF emphasizes that government securities are among the safest investments in the capital market, they have low risk. They are short-term government loans in national currency (up to 1 year - treasury bills) and long-term (from 1 year and more - government bonds) and, issuing these products, the government borrows money from the population for a certain period, with interest paid to the holders of government securities. This type of investment has important advantages: the state guarantees the return of invested funds; the ability to sell government securities at any time; transparent formation of the price of government securities; access to a wide range of investors. This instrument is available to individuals and legal entities, residents and non-residents of Moldova after the Ministry of Finance allows government securities to be traded on the Stock Exchange. The transactions are conducted via a broker - an investment company licensed by CNPF, which on the basis of an intermediary agreement conducts transactions of purchase and sale of government securities, places them on the Stock Exchange, records the results of transactions in the client's accounts, etc. CNPF stresses that trading with long-term government securities on the Stock Exchange of Moldova may contribute to the development of the domestic capital market and increase investors' confidence in this sector, and potential buyers will have the possibility to invest their financial resources more efficiently. // 18.04.2023 – InfoMarket