The Ministry of Finance is set to release a new batch of national bonds by the end of the month, with hopes that they will attract significant interest from investors. This move comes after Andrej Plenković, president of the HDZ party, announced in March that citizens would have the opportunity to invest in state securities.
Over time, national bonds and treasury bills have remained popular among investors, despite an increase in household deposits in domestic banks. With interest rates on deposits reaching up to 2.5%, bond investors are expected to see even higher returns, possibly around 3.4-3.5%.
While details about the specifics of the new bond issue remain uncertain, it is likely that those who invested in a three-month national treasury bill in February will receive their returns by May 30. However, there are concerns about the timing of this issuance if it happens under a technical government, as it could potentially impact the strategies of the incoming government.
Citizens have already lent the state over 3.3 billion euros through national bonds, which accounts for approximately 6% of the total public debt. This latest bond issue is expected to increase the share of public debt held by citizens by May’s end.
