Finance Minister Ladislav Kamenický (source: TASR)
Finance Minister Ladislav Kamenický (Smer) announced in October 2024 that Slovakia would issue government bonds to the public for the first time in March 2025. “I am convinced the first issue will be snapped up,” he said at the time, adding that he intended to invest himself, though he had yet to decide on the amount.
Billboard advertisements for the bonds, branded as Investor and Patriot, have already appeared across Slovakia.
Government bonds are widely regarded as a low-risk investment, given that the probability of state default – i.e. failure to repay the principal and interest (coupons) – is minimal. While issuing government bonds for retail investors is common in developed markets, Slovakia has little prior experience with the practice.
The bonds could provide an alternative to fixed-term deposits and savings products, particularly as banks are continuing to lower interest rates.
1) How much in government bonds for the public does the state plan to issue?
From March 3, the government, through the Debt and Liquidity Management Agency (Ardal), aims to sell €400 million worth of bonds to the public. The sale is scheduled to run until March 31, or until the bonds are sold out. If demand is high, the total volume may be increased to €500 million.
This is a pilot programme designed to improve financial literacy and allow the state to finance its debt using public funds. If successful and met with strong interest, Ardal does not rule out issuing government bonds for the public on an annual basis.
