Home / Business and Politics / Primorac: ‘People’s’ Bonds an Opportunity to Enhance Money with Significantly Higher Yields

Primorac: ‘People’s’ Bonds an Opportunity to Enhance Money with Significantly Higher Yields

<p>Financijsko - investicijski forum 2024. Marko Primorac</p>
Financijsko - investicijski forum 2024. Marko Primorac / Image by: foto Ratko Mavar

Deputy Prime Minister and Minister of Finance Marko Primorac stated on Monday that the new issuance of ‘people’s’ bonds gives citizens the opportunity to enhance their financial resources at significantly higher yields than they can achieve in commercial banks.

Starting today, citizens have the option to subscribe to ‘people’s’ bonds with a maturity of three years, with a minimum expected yield of 3.1 percent, and based on the received offers, including participation from institutional investors, the final issuance conditions will be defined, and that yield, or interest rate, will certainly be higher than 3.1 percent.

– How much exactly, we will define on July 10 – said Primorac on the sidelines of the 19th Convention of Croatian Exporters.

The targeted issuance amount is 750 million euros, responses to all previous issuances of government securities have been significant, and the state is providing citizens with the opportunity to enhance their financial resources at significantly higher yields than they can achieve in commercial banks, the minister emphasized.

Indirectly, they can also achieve other goals, primarily in terms of increasing financial literacy. Citizens now talk about government debt instruments – bonds and treasury bills – as if it is ‘something completely normal’, he added.

‘Vujčić has done an excellent job’

Journalists asked Primorac whether there had been discussions in the government regarding a new mandate for the governor of the Croatian National Bank Boris Vujčić, considering that his current term expires this month, and whether he should remain in that position.

Primorac asserted that Vujčić has shown in his previous activities that he is a person who understands monetary policy, is well known on the international financial scene, has international contacts, and in Primorac’s opinion, has done an excellent job so far.

Primorac did not participate in discussions regarding the expiration of the mandates of individuals in the CNB, he is not sure if any discussions took place, and he says that ‘as far as he knows, the government is not engaged in this in any way’.

– That is a question that is resolved in the Croatian Parliament – said Primorac.

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