Sales of the Hungarian Government Securities Plus bond for retail investors now exceed more than 4,700 billion forints (EUR 13.6bn), Finance Ministry state secretary András Tállai said in Saturday’s issue of daily Magyar Nemzet.
Borrowing from Hungarian households, rather than foreigners, and in forints, instead of foreign currency, is a big advantage for the state in a time of crisis, Tállai said. Demand for the Plus bond, launched in May of last year, has remained robust even during the coronavirus crisis, which is a sign of strong confidence, he added.
Tállai said subscribers of Plus bonds had so far accumulated more than 85 billion forints in interest. The Plus bond, which has attracted unprecedented interest for a retail government security in Hungary, carries coupons that get bigger as the paper approaches maturity. If held for the full five-year term, the bond pays an annualised yield of 4.95%.
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