More than six thousand citizens have subscribed to bonds worth 154.5 million euros

A total of 6,209 citizens have subscribed to the national bonds, with the total amount of subscribed offers reaching 154.5 million euros, reported Deputy Prime Minister and Minister of Finance Marko Primorac on Monday.

– I hope that all that has been subscribed will be paid – said Primorac at a press conference.

Citizens could subscribe to state bonds from July 1 until today, with a minimum investment of 500 euros, a minimum interest rate of 3.1 percent, and the state plans to raise 750 million euros by issuing three-year bonds. On Wednesday, July 10, subscriptions for institutional investors will also open and will last only that day.

In just over a year, this is the fifth issuance of state securities that citizens could purchase, of which the second is state bonds.

From February 22 to March 1 last year, about 45 thousand citizens invested 1.34 billion euros in two-year “national” bonds.

Citizens’ interest evidently lower

When asked to comment on the weaker response from citizens for subscribing to national bonds compared to previous bond and treasury bill issuances, and whether the three-year maturity of the bond might have deterred them, Primorac said that it cannot be discussed in terms of success or failure.

He considers it successful that citizens have been provided with the infrastructure to participate in the issuance of national bonds and treasury bills.

He stated that the interest in this issuance was evidently lower, but that it cannot be treated as a shortfall. He agreed that part of the reason could be the maturity, and there is also the fact that the issuance occurred practically less than a month after the last issuance of treasury bills.

– There can be many reasons; however, there is no need to comment on how we liked the response – said Primorac.

Regarding state financing, as before, institutional investors are available, so what citizens do not subscribe will be left to them, he said.

He announced that citizens will likely have the opportunity to subscribe to “national” treasury bills again in September.

We have a property tax, but…

When asked about the announcement of introducing a tax on vacant apartments and whether banks will rebel against it, Primorac reiterated that there is a tax on holiday homes, which covers any building used occasionally or seasonally. Thus, it includes all properties except those where someone is registered and lives and those that are in permanent lease.

The name of this tax will also have to be changed, and it will be further clarified that it does not apply only to houses and only to houses by the sea, the minister announced, reminding that since the beginning of this year, the limit for determining the tax on holiday homes has been increased to five euros per square meter.

He stated that the tax system needs to undergo a transformation towards more intensive taxation of real estate and less taxation of labor, but that this transformation will be gradual.

– We have a property tax, but it is not in the desired form that we would like it to be – said Primorac, noting that the goal is for the tax to be calculated based on the value of the property, not its square footage.