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The country is launching another wave of bond sales.  The anti-inflation option is successful

The country is launching another wave of bond sales. The anti-inflation option is successful

On Monday, the Ministry of Finance launched the twelfth issue of bonds, which can be ordered until Friday, September 17. In the previous issue, people ordered government bonds intended for individuals only for 4.54 billion crowns. The number of applications amounted to 5871. During 11 subscription periods, the interest in savings bonds amounted to about 33.2 billion CZK.

According to the office, the greatest interest so far has been in the so-called anti-inflation bonds, which the Ministry of Finance has offered since the third issue.

The Ministry of Finance again offers two types of bonds in the new issue, namely, reinvestment and anti-inflation with a maturity of six years. The proceeds of both bonds are exempt from income tax.

Like previous issues, reinvestment savings bonds have increasing annual returns. The Ministry of Finance has set the average annual interest rate on the new issue at 1.5 percent, that is, the same rate as the previous issue.

“Reinvestment bond yields are set in advance and increase each year from 0.50 percent in the first yield period to 2.75 percent per annum in the last yield period. For the first yield period, bondholders will be credited with yields that are already higher than what is currently available on most accounts. savings whose income is additionally taxed in comparison to the yield of government bonds.”

In the case of so-called anti-inflation bonds, their yield is still determined in accordance with the development of consumer prices. The minimum interest rate is set in each period of return at zero percent per annum. In the event of deflation, according to the Ministry of Finance, the face value of the bonds held will remain the same, while their fair value will rise.

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All bonds offered, ie reinvestment and anti-inflation, can be obtained through electronic access to the Asset Account Management or also at selected branches of Česká spořitelna and ČSOB.

The office noted that people can now obtain individual-only government bonds entirely electronically without having to visit stone branches of selected banks from Česká spořitelna and ČSOB.

They can use the eidentita.cz interface with the use of eObčanka. This is an ID card with an activated SIM card, issued by the state since July 1, 2018. In addition, holders of previously issued bonds can use the eidentita.cz website as an alternative approach to the full service of their account.

In individual subscription periods, which follow each other, those interested can purchase bonds with a value of at least CZK 1,000. The maximum size is set at 50 million CZK for a single type of Republic bond.

export * Size (in billions of CZK)
Pilot – Fall 2011 20,4
Spring 2012 15,3
Christmas 2012 30
Spring 2013 17,5
Christmas 2013 21,3
Bonds – Issue 1 2,92
Bonds – Second Edition 0,9
Bonds – Third Edition 5,38
Bonds – Fourth Edition 1,2
Bonds – Fifth Edition 1.7
Bonds – Sixth Edition 2,1
Bonds – Seventh Edition 2,3
Bonds – Eighth Edition 4.02
Bonds – 9th Edition 5
Bonds – 10th Edition 3,2
Bonds – Eleventh Edition 4,5*

* Volume of orders

Zdroj: MF