The Ministry of Finance on September 27 will launch the first ever 10-year government bonds on the internal market, IPN reports.

The issuance of 10-year government bonds will be a major step towards completing the efficiency curve alongside the currently issued two-, three-, five- and seven-year bonds and will contribute to developing the life insurance market and to fulfilling the national economic development plan, stated the Ministry of Finance.

The state securities are among the safest investments as the holders benefit from full state guarantees for the invested capital and the related interest. The associated risks are very low or almost equal to zero. The money can be recovered anytime by selling state securities on the secondary market.  Complementarily, the interest rates on SS are now 7.07% for 364 days, 8.00% for seven years and will be 8.25% on 10-year government bonds.

Resident or nonresident private individuals and legal entities can take part in tender contests to place state secreted only through banks-primary dealers.

A government bond is a debt security issued by a government to support government spending and obligations. Government bonds pay periodic interest. The bonds issued by national governments are often considered low-risk investments since the issuing government backs them.