The Ministry of Finances starts to issue state securities with a long circulation term. At the tender contest of May 24, large investors will be able to purchase government bonds maturing in two, three, five and seven years, IPN reports.
“This operation allows investors to invest the available resources in government bonds at interest rates of 8.00% (maturity of two years), 8.25% (maturity of three years), 8.50% (maturity of five years) and 9.00% (maturity of seven years). The interest provided by the Ministry is considered advantageous against the rate of inflation that, according to the last forecast round, in the second quarter of 2024 will be minimum 3.9%,” runs a press release.
Investors can buy state securities through primary dealers or through brokers operating on the secondary market, supporting this way directly projects financed by the state, such as the repair and building of roads, kindergartens and hospitals, the payment of salaries and pensions and other social activities.
The list of state bonds proposed for trading and the opened positions will be published by the Moldova Stock Exchange on its website.
Also, in order to increase the investment attractiveness of state securities traded on the regulated market, the National Commission for Financial Markets will not levy taxes, while the Moldova Stock Exchange halved the commission collected by the market operator.
According to the Ministry of Finance, the state securities are among the safest forms of investment as they benefit from full state guarantee. Under the legislation, the payments for redeeming state securities and for paying interest on these are given priority.
