The Slovak Finance Ministry plans to issue government bonds aimed at private domestic investors as early as next year. Finance Minister Peter Kažimír announced the plan after a cabinet session on Wednesday, November 14.
"We will try to float such an issue with the lowest possible costs as early as next year," he said, as quoted by the SITA newswire. The technical details of the issue are not yet known; the ministry has charged the Debt and Liquidity Management Agency (ARDAL) with drafting them. The issue of distribution also remains to be confirmed; this could be done either through commercial banks or the state-run postal operator Slovenská Pošta. Kažimír said that if the bonds are distributed through commercial banks, there might be a conflict of interest since these also offer deposit products to their clients. It is important that the issue is made attractive even for lay-clients, Kažimír said, adding that it must be a comprehensive programme rather than a one-off event.
The Finance Ministry first floated the idea of special bonds for Slovak inhabitants in August, as part of the general draft budget for 2013-2015, as one way to diversify the investor base to finance the state debt.
Compiled by Zuzana Vilikovská from press reports
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