Moldovan finance ministry to launch state bonds for seven years

Chisinau, 13 April /MOLDPRES/ - The Finance Ministry has informed that the first auction of state bonds for seven years is scheduled for 21 April 2021. The elements of the issuance of the concerned state bonds, such as the indicative volume of the issuance, annual interest rate, terms of the payment of the interest (coupons), the date of payment, etc. will be placed five days before the holding of the auction on the webpage of the institution.    

The issuance of state bonds for seven years will represent a major step to completing the curve of efficiencies, along with the state bonds for 2, 3 and 5 years, presently issued by the Finance Ministry. ‘’Also, they will represent a reference point for setting the price for the long-term instruments (loans, municipal bonds, etc.), as well as for the development of other new ones. This will also contribute to the development of the life insurances market and will allow the native banks to accept deposits for longer terms,’’ a press release by the ministry reads.   

The private people and legal entities, resident and non-resident, can participate in auctions on the placement of state transferable securities only through primary dealer banks.   

The extension of the maturity of the portfolio of state transferable securities, issued on the domestic market, is one of the medium-term actions, planned by the Finance Ministry to achieve the strategic long-term goal. The latter sees the development of the domestic market of state transferable securities, being annually envisaged in the programme of state debt’s management.    

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