ECONOMY MARKETS SUPPLEMENTS

Government bonds to be issued on the occasion of the Centenary. Starting on Monday, people can buy government bonds for 2 years with a non-taxable interest rate of 4.5%

From Monday to December 14, people can buy government bonds for 2 years, through a new issue initiated by the Public Finance Ministry (MFP), on the occasion of celebrating the Centenary of the Great Union, which is the third issue under the Thesaurus program.

The nominal value of a government bond is 1 Lei, with a 2-year maturity and an interest rate of 4.5%, the income being non-taxable, according to a press release of MFP.

The maximum subscription value for each investor is RON 200,000; the interest is annual, and payable at the terms provided in the issue prospectus.

The bonds can be purchased by the resident individuals who reached the age of 18 on the date of the subscripotion, including those who participated in the previous issues.

Between November 26 and December 14 this year, the bonds can be purchased through the operative units of the State Treasury and the postal subunits in the network of the Compania Nationala Posta Romana – S.A., as follows: between November 26 and December 14, 2018, from the operative units of the State Treasury; between November 26 and December 13, 2018, through the network of post offices of the Compania Nationala Posta Romana, in the urban areas, and between November 26 and December 12, 2018, in the rural areas.

During the subscription period, investors have the possibility to request the cancellation of the subscribed amount, by submitting a cancellation request. After this period, the subscriptions are irrevocable and they cannot be cancelled anymore.

In case of death, the property right on the government bonds is transferred to the heirs, who must submit the legal documents attesting their capacity as heirs.

After the subscription period will end, MFP will organize a raffle for all the investors in the Thesaurus Program – the Centennial Edition. Thus, 1,000 selected investors will receive a bonus interest in amount of RON 5,000, granted in the period coming right after the winners are announced.

The list of the winners of the bonus interest will be published on the MFP website, without including personal details, but only indicative information related to the winners.

The winners of the bonus interest will be notified by MFP and a term for picking up the prize from a unit of the State Treasury will be set; those who subscribed through a postal office of the Compania Nationala Posta Romana –S.A. are also taken into account to this end.

At the Government meeting of Friday, a Government’s Decision was approved in order to amend the mechanism of launching government bonds for the population in order to allow organizing the raffle, the Finance Minister Eugen Teodorvici stated. The raffle will be organized during December. “This is the third issue that we launch, the first one was for 5 years, the second for 3 years, and this one will be for 2 years, with an attractive interest rate of 4/5%, with a 2-year maturity”, Teodorovici also said on Friday.

Also at the Friday Government meeting, the Government approved the amendments brought by MFP the legislation in order to streamline the mechanism by which the bonus interest can be granted for all the issues of government bonds for the population, regardless of the distribution channel.

 

Related posts

Competition Council’s Chiritoiu: We are proposing BNR to help Romanians refinance their loans more easily

Nine O' Clock

When will the Government discuss the amendments to the Tax Code? Misa: Gov’t to consider ordinance amending the Tax Code on Wednesday. PM Tudose: Gov’t might not discuss it on Wednesday

Nine O' Clock

National Bank of Romania’s foreign exchange reserves reaches 32,369 million euros in October 2018

NINE O'CLOCK

Leave a Comment