Kamenicky: Gov't Bonds Bought by More People This Year, But They Invested Less

Bratislava, 1 April (TASR) - A total of 22,100 investors bought government bonds intended for ordinary people this year, 900 more than last year, although the average amount invested fell to €17,800 from last year's €23,600, Finance Minister Ladislav Kamenicky (Smer-SD) told a news conference on Wednesday, describing these trends as positive. According to Kamenicky, the 'Bonds for the Public' project is successful and should continue in the years to come. "The project's goal has been achieved. Banks provided smooth sales without any major issues. It's been confirmed that this is an investment for ordinary people, and we're pleased that more people in Slovakia chose to buy," said Kamenicky. Unlike last year's pilot sale, when 'Bonds for the Public' worth a total of €500 million were sold out in just 3.5 days, this year they were available for the entire planned period from 2 to 20 March, with people investing a total of €417 million in them. One of the reasons for this was that the interest rates on both the two-year and four-year bonds were 0.3 percentage points lower than last year. "I believe that this year's set-up was very appropriate, partly because the bonds didn't sell out as quickly as last year - in just 3.5 days, that's probably not the purpose. They were available for the full 18 days, and I think that it was good that the distribution among the population in Slovakia was more even," stated Kamenicky. According to him, it was also positive that sales exceeded €400 million, which was the originally planned amount before it was subsequently increased. The biggest number of people (nearly 11,000) invested in government bonds worth between €4,000 and €10,000. This was followed by investments of between €11,000 and €30,000, made by more than 6,500 buyers. The smallest group, just under 300 people, invested more than €100,000. The minister specified that investors aged over 51 dominated the purchase of government bonds, and they were much more likely to invest in the shorter-term Investor 2 bond. Riskier investments were preferred by the under-35 age group. After two 'Bonds for the Public' sales, it's become clear that there is strong demand for government bonds among the public, and the project should therefore continue, stated Kamenicky. Its parameters shouldn't change significantly, as the minister views the current mix as being well set. Improvements are planned as of 2028, including the launch of a mobile application that will enable bonds to be purchased electronically, added the minister. ko/df