The Ministry of Finance is set to launch a new round of national bonds in the coming weeks, with expectations that they will be available on the market by the end of the month and generate considerable interest. The initiative aims to provide citizens with more opportunities to invest in state securities, as previously stated by Andrej Plenković, president of the HDZ party, in March.
Throughout the years, citizens have shown a strong interest in investing in national bonds and treasury bills, even as household deposits in domestic banks continue to rise. With interest rates on deposits offering up to 2.5%, the potential interest rates on bonds are expected to be even higher, possibly around 3.4-3.5%.
The specifics of the new bond issue remain uncertain at this time, but it is likely that those who invested in a three-month national treasury bill in February will receive their returns by May 30. However, there have been concerns raised about the timing of this new issuance, particularly if it happens under a technical government, as it may impact the strategies of the incoming government.
Citizens have already lent the state approximately 3.3 billion euros through national bonds, which represent about 6% of the total public debt. This new bond issue is expected to increase the share of public debt held by citizens by the end of May.