Skopje, 15 May 2023 (MIA) - As of June, the state will introduce the popular bond as a new instrument to finance development projects and used at the capital market, said Finance Minister Fatmir Besimi on Monday.

The popular bond will have a two-year maturity and a minimum amount of Mden 10,000. Citizens can trade it at the Macedonian Stock Exchange even before its expiration. The state plans to secure EUR 50 million through this instrument in the 2023 Budget.

Minister Besimi told reporters the interest rate for the bond has not been yet defined but it will be higher than bank deposits and lower than the rate used for foreign indebtedness.

"This is a win-win situation for all. The purpose of issuing the popular bond is not Budget liquidity. This bond, along with the development, green and project bonds, is stipulated in the Accelerated Growth Plan and it is part of the projected indebtedness at the domestic market, while not increasing the deficit and the public debt," said Besimi.

He said the preparations for the bond issuance have been ongoing for two years, with the state, the citizens and the economy benefiting from it.

"Citizens will have the opportunity to invest their money and protect their value. The state will ensure financing at lower rates compared to the ones available at the international markets, and funds will be used for development projects that will have a positive impact on the economy," noted Besimi.

The idea, he added, is for citizens to become aware of the significance of investments because money not invested in time of inflation loses value.

The FinMin said he did not expect the popular bond to affect bank deposits, since citizens would have greater benefit from investing cash they keep at home in bonds while leaving deposits in banks.

Photo: Ministry of Finance