The state securities will be sold directly to private individuals in the Republic of Moldova through the agency of an electronic platform (e-VMS) in which the securities will be issued directly to individuals without tender contests and without intermediation. Currently, the private individuals can purchase state securities only through primary dealers. The Cabinet on September 22 approved the concept of the program to sell state securities directly, IPN reports.

The draft says that in general, the investors can purchase state securities by two main channels: primary market and secondary market. Nevertheless, the private individuals (wholesale or retailing investors) often do not have access to state securities as the institutional investors do because they have small sums for investment.

In Moldova, the resident or nonresident private individuals can purchase state securities only through the agency of primary dealers. The concept of the program to sell state securities directly to individuals aims to facilitate the persons’ access to state securities through the electronic platform.

State securities are a form of state debt, representing a short, medium or long-term loan agreement. They have a face value of 100 lei. The circulation periods for treasury bonds are 91, 182 and 364 days, while for state bonds are from a year and up.

At the end of this May, the private individuals owned state securities issued on the primary market to the value of 170.2 million lei, which is 0.9%.