17th June 2023, Skopje – Prospectus on the first auction of the development bonds for citizens will be announced by the end of this month, by which, this new financial instrument will be made available for the citizens. Procedure for purchasing bonds will be simple, to be carried out via the banks’ branch offices, where the applications will be submitted therefor, as pointed out by Minister of Finance, Fatmir Besimi in an interview for “Faktor”, thereby underlining the greater interest shown by citizens since the announcement of their issuance.
“Development bond for citizens is not aimed at collecting money by the state – auctions of government securities on the domestic market have been held for two decades already, and I would like to hereby stress the great interest demonstrated by the institutional investors (banks and funds) over the past years. The very purpose thereof is offering new investment opportunities on the financial market to the citizens, which is a common thing in most of the economies throughout the world. I am pleased with the great interest demonstrated by the citizens once the issuance of the development bond for citizens was announced. I believe that by opening new opportunities for investments, in addition to strengthening the financial education of the population, the general awareness of the sound savings management and the possibilities for generating profit therefrom, will be raised”, Minister pointed out in the interview.
He went on that the citizens investing their available funds in the development bonds for citizens, will receive a compensation, i.e. attractive interest rate, which will be announced after publishing auction-related Prospectus.
“Citizens feel secure since the government bonds are considered a risk-free investment everywhere in the world, with such instrument being issued by the state, while also protecting their funds against the adverse effects resulting from the inflation. Coupon interest rate is generated from these bonds, entailing that every year, the agreed interest will be paid on the invested amount, whereby, at the end of the deadline, the invested capital, i.e. the amount the citizens are to pay, will be returned. This bond’s maturity will be two years”, Minister Besimi pointed out.
During his interview, he underlined that the bonds are financial instruments present in almost all economies, which do not substitute the savings deposits neither the investments in other securities, such as shares and parts in investment funds.
“Development bond for the citizens is not aimed at replacing bur rather enriching the relatively plain investment portfolio in our country. “Do not pull all your eggs in one basket – build a portfolio” is the first lesson for investors. The possibility for free-risk investment provides for enhancing the portfolio”, Minister Besimi said.