5th July 2023, Skopje – Development bond for citizens is an innovative product on the domestic financial market, intended first and foremost for the citizens and it is to their advantage. It is transparent, offering the citizens a possibility, amid prevalent high inflation, to make a risk-free investment generating sound earnings,

Minister of Finance, Fatmir Besimi, pointed out in his guest appearance in “Tema na Denot” Show on Sitel TV. He emphasized that the procedure for purchasing the respective bonds is simple and the citizens can purchase them via all commercial banks with the funds deposited in their accounts or in cash.

“It is an innovative product on our financial market, intended primarily for the citizens and it is to their advantage. In times of relatively high inflation, this product adds incremental value to their money in terms of generating sound earnings. It is a risk-free investment, since the citizens can expand their investment portfolio in government bonds, in addition to deposits with banks and shares, they can trade with them, depending on the needs on the secondary market, i.e. on the Stock Exchange or OTC. It also provides the possibility for the citizens to contribute to the development of the financial markets, considering they can make the purchase with their funds deposited with the banks, as well as in cash, thus encouraging the reduction of the informal economy.  In particular, cash savings will now be mobilized in the banking system, thus boosting the development. The citizens will also be part of the country’s development projects, i.e. they will participate in financing the development projects”, the Minister said, adding that all citizens, nationals of the Republic of North Macedonia, including those in the diaspora, can invest in the development bond for citizens.

He underlined that the procedure for purchasing the respective bond is quite simple, taking place via the banks, as all other services rendered. All banks are included in the process, and the citizens can apply from 9 a.m. till 2 p.m. by 12th July. The auction will be held on 13th July, and the settlement will be registered at the Central Securities Depositary several days later.

As the Minister pointed out, interest on the purchased development bond for citizens will be 5% annually, to be paid on 20th July 2024 for the first year and on 20th July 2025 for the second one, with the entire invested amount being repaid, i.e. invested funds and earned interest.

This is the first issue of development bonds for citizens in the amount of Denar 600 million, and the interest in purchasing the bond will set the amount to be issued. Development bond for citizens will be continuously offered on the market as an instrument, and the citizens can invest in such instrument in future as well.

According to the Minister, the bonds will have no impact on the citizens’ deposits with the banks and the whole process is a transparent one. “All control regulations and procedures already implemented by the banks will apply when purchasing the development bond for citizens. As regards this instrument, no new exemptions apply beyond the anti-money laundering standards”, the Minister emphasized, underlying that the instrument is immune to political statements and it is to their advantage.

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