“The Hungarian Government Bond Plus is successful and popular; over 500 billion forints (EUR 1.55bn) worth of bonds were purchased during the first week of issue. This is the highest ever figure for first-week trading on the market”, Minister of Finance Mihály Varga said in a statement to Hungarian news agency MTI.
“The Government has set a goal of increasing the public possession of government securities to 11 trillion forints (EUR 34.1bn) by 2023”, Mr. Varga pointed out. As he explained, according to the latest data this figure has reached 8060 billion forints (EUR 25 billion), thanks to the fact that the Hungarian Government Bond Plus performed outstandingly well in the first week, with 529 billion forints (EUR 1.64bn) worth of the bond sold between 3 June and 7 June 2019. This is the highest ever recorded sum; no other consumer government bond has ever achieved this level of sales during its first week of issue. The record so far was held by the 1-year Hungarian Government Bond in 2017, when half as much, 206 billion forints worth were sold during the first week of issue.
The Minister of Finance told the press that the new government bond is not only favourable for the Hungarian public, but also reinforces Hungary’s stability. The Government’s goal is to protect the economic results achieved so far, which may also be facilitated by the Hungarian people undertaking a more marked role in the financing of sovereign debt. The new government bond is one of the most secure investments, which is not only tax-free, but also assures a high level of interest, providing a total return of 27.35 percent over a period of five years.