13th July 2023, Skopje – The first auction of the development bond for citizens successfully completed today, given that the accepted amount reached Denar 1,448,030,000, which is twice as much as the amount offered under the respective Prospectus, amounting to Denar 600 million.
“Considerable interest was demonstrated in this innovative productive on the financial market. Citizens recognized this as a great opportunity to make a risk-free and safe investment, thereby adding incremental value to their money in terms of generating sound earnings amid prevalent high inflation,” Minister of Finance, Fatmir Besimi pointed out.
He hereby stressed the multiple benefits from the introduction of this instrument on the market, since in addition to generating benefits to the citizens, the investments therein also contribute to growth of the domestic economy given that the funds under the development for citizens will be used, via the Budget, for supporting the already planned development projects. This will also result in reduced informal economy, since it will provide for putting citizens’ stashed cash into circulation.
1,283 citizens participated at the auction, investing total of Denar 1,448,030,000 therein. Minimum amount, which the citizens could invest so as to participate at the auction, was Denar 10,000, by filling-in an application for purchasing a development bond for citizens. No maximum amount was set. Citizens filled-in the applications and paid the respective amount at the commercial banks. This process was carried out by the Ministry of Finance in cooperation with all commercial banks in the country.
This issuance process was completed upon holding the auction, to be followed by registering the development bonds for citizens in the Central Securities Depositary. Interest-based earnings will be paid to the citizens on 20th July 2024 in the first year and 20th July 2025 in the second year, when the entire invested amount will be returned thereto. Fixed interest rate accounts for 5% per year, throughout the 2-year maturity period of the development bonds for citizens. This means that citizens having invested in this development bond will generate a total earning of 10% of their invested amount.