2nd July 2023, Skopje – The first reason why the citizens should invest in development bond for citizens is the favourable interest rate, with the second one being that it is a safe investment. The development bond for citizens also provides for expansion of the investment portfolio via developed capital market, being the third reason why to invest. Combating informal economy is the fourth reason, with investing in a better tomorrow, economic growth and development being the fifth one, indicated by the Minister of Finance, Fatmir Besimi, in his most recent column. Right now, the development bond for citizens, with 5% coupon interest and two-year maturity, is one of the most favourable securities on the market, earning 10% of the value invested for two years. Government securities are the safest investment instrument, since they are backed by the government as issuer, guaranteeing their safety and safe return on their investment.
“Development bond for citizens is with a coupon interest, more precisely the interest the government pays to its holder is paid at several instances, as per the due dates set in the Prospectus. In the case of development bonds for citizens offered at this auction, the bond holders will be paid interest on 20th July 2024 and 20th July 2025. Hence, if you plan to invest Denar 100,000, the government will pay Denar 5,000 interest on each of the dates specified, or total earnings of Denar 10,000 for both years, accounting for 10% of the value invested. Upon bond’s maturity, the government repays the citizen the whole invested amount. Minimum amount to invest in a single bond is Denar 10,000”, Besimi wrote.
Now, the citizens can also ripe these benefits through an instrument designed particularly for them. Development bonds for citizens offer safety from yet another aspect – protect their savings against the inflation.
“The procedure to invest in a development bond for citizens is exceptionally simple. The citizens are to visit any of the commercial banks and apply to participate in the auction, as well as make a payment in the amount they intend to invest. The application should be submitted to the respective bank one day prior to holding the action at the latest. Once the auction is completed, the applicants sign an agreement and the bonds are registered in their name and, upon their maturity, they are paid interest”, Minister of Finance wrote.
First auction of development bond for citizens will be held on 13th July 2023. The citizens can apply by 12th July. The amount to be auctioned is Denar 600 million.