BRATISLAVA, January 4, (WEBNOVINY)- Sale of bonds to local people might bring EUR 150 million – 200 million annually for state debt servicing. According to Finance Minister Peter Kazimir it is not a significant sum but the state is working on the implementation of the project. The minister however says that the sale of bonds to inhabitants can be successful only if it represents a comprehensive program rather than a one-off event.
“The technical preparation of a bond issue for local inhabitants continues in cooperation with the State Treasury, the Finance Ministry’s Debt and Liquidity Management Agency (ARDAL) and the state-run postal operator Slovenska posta,“ said the minister. Costs of floating the special bond via commercial banks might be high and, moreover, the government bond would rival classic bank deposit products. „We have to offer something competitive,“ said the minister. Bonds have a strong guarantee as the state stands behind them and are a fixed-interest security.
Even despite the not highest expected volume of sale of such government bonds it makes sense to start selling securities to private citizens, says Kazimir. “It will not be a miracle on which Slovakia’s financing would be based. It will be a new product that is to enable people to expand the scale of their saving tools and create gradually for the state an additional source of financing the state-provided services,” concluded the minister.
SITA