30th June 2023, Skopje – Starting today, the citizens can purchase development bonds for citizens, after the Prospectus for the first auction in the amount of Denar 600 million was published. They can invest minimum Denar 10,000 by purchasing a bond, with the interest rate, i.e. the yield they will generate for their investment, of 5% annually, Prime Minister, Dimitar Kovachevski, and Minister of Finance, Fatmir Besimi, said at today’s press conference, indicating the simple procedure for purchasing the bond and the benefits arising from the funds invested.
“The new financial instrument on the market brings numerous benefits for both the citizens and the economy as a whole. The first and one of the key benefits for the citizens is the profit, i.e. the yield, they will generate from the development bond for citizens. The development bond for citizens bears 5% coupon interest, with two-year maturity. Besides the benefits for the citizens, this bond also brings macroeconomic benefits, i.e. benefits for the economy as a whole. Funds to be mobilized through the auction of the development bond for citizens will be used for budget support, i.e. they will be used for servicing the current needs, as well as for development purposes and investments in consumer durables. In any case, these funds will be again injected, through the Budget, in the business sector, via consumption, payment of wages and salaries and investment activities likewise. They will boost economic activity, thus contributing to accelerated economic growth”, Prime Minister Kovachevski said.
Minister of Finance, Fatmir Besimi, emphasized that, as promised, the Prospectus for the first auction was published at end-June and, as from today, the citizens can commence the procedure for purchasing the development bonds for citizens.
“The procedure is very simple. The citizens can fill in an application to participate in the auction at all commercial banks, also making a payment in the amount they intend to invest. Minimum amount to purchase is Denar 10,000. The application should be submitted to the respective bank one day prior to holding the action at the latest, i.e. not later than 12th July. Once the bonds are registered in the Central Securities Depositary, they will be issued to the bond holders, i.e. registered in their name”, Minister Besimi said.
He went on by saying that this is a new instrument by which the citizens, once purchasing it, invest in projects aimed at country’s development. Thereby, these investments are safe, generating yields for the citizens and, what is even more important, in times of two-digit inflation, it adds incremental value to their money. For instance, as the Minister pointed out, if a citizen invests in 10 bonds, i.e. invests Denar 100,000, he/she will earn Denar 5,000 at the end of the first year, additional Denar 5,000 at the end of the second year, or total of Denar 10,000 for a Denar 100,000 investment.
Auction of the development bond for citizens will be held on 13th July 2023 when, as the Minister underlined, we will see how much citizens’ interest this new instrument has stirred.