On November 3, the state will issue domestic bonds worth 50 million euros for Montenegrin citizens for two years with an annual yield of 3,75 percent. The minimum investment is 500 euros, and the bond issue lasts until November 15. If a citizen buys bonds worth 1.000 euros during that period through selected banks, at the end of the first year they will have a guaranteed return (profit) of 37,5 euros, and the same amount at the end of the second year when they will receive the principal (total two-year return of 75 euros).
This was announced at today's press conference of the Ministry of Finance.
Partner banks through which citizens will be able to purchase bonds are CKB, NLB, Erste, Hipotekarna, Prva and Univerzal Kapital Bank.
Minister of Finance Novica Vuković said that this annual yield is higher than the interest that banks currently pay on term savings, meaning that this is an opportunity for citizens to better invest their capital and that the state will borrow more cheaply.
He also stated that if there is greater interest from the target audience, they will increase the issue to 100 million euros, and that it is possible that in the second round, they will also allow domestic legal entities to participate in the purchase of bonds.
Vuković said that this is a better return than traditional savings, that the investment has maximum security because the state is the guarantor of the principal and return, and that citizens will not have any additional costs when registering. Citizens living abroad will also have the opportunity to purchase.
The minister said that the money collected will be used for infrastructure construction and capital projects, and that citizens who buy bonds will make a profit and at the same time invest in the development of their country.
After the bonds are issued, they will be listed on the Montenegro Stock Exchange and bond buyers will have the opportunity to sell them on the stock exchange before the expiration of the two-year period at prices set there.
The Ministry will organize a media campaign as well as a special website where it will publish all data and instructions.
According to the above examples, on an investment of 10.000 euros, the two-year return is 750 euros, and for an investment of 50.000 euros, the citizen receives 3.750 euros for both years. The maximum amount of investment in bonds will not be limited.
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