Romania’s Govt. invites households to keep buying public debt

Romanians can subscribe, starting Tuesday, September 1, Government securities with maturities of 1, 2, and 3 years, the Finance Ministry announced.

The subscription period for this program, called Tezaur (Treasury), will end on September 30, 2020.

The Finance Ministry argues that these issues represent a good saving option for Romanians, given that interest income for such instruments is non-taxable.

The annual coupons attached to the bonds are 3.5% for the 1-year bonds, 4% for the 2-year bonds, and 4.25% for the 3-year maturity.

There is no individual subscription ceiling. However, as opposed to the bonds issued in July to households under the Fidelis program, the issues launched in August and September will not be listed at the Bucharest Stock Exchange (hence they are a less liquid investment option).

Government securities can be purchased from the units of the State Treasury and Romanian Post.

(Photo: Pixabay)