The latest government securities intended for members of the public issued under the name Hungarian Government Securities Plus – which will offer higher gains than any other government securities in the past – will be available for subscription from 3 June 2019, Finance Minister Mihály Varga announced.
In consequence of the support provided for families, the new securities will encourage the public to increase their savings, and will be easily accessible, flexible and tax-free, the Finance Minister added.
The interest paid on Hungarian Government Securities Plus will increase the incomes of Hungarian families and members of the public in general, and will strengthen the domestic economy. With the introduction of the new product, the financing of the sovereign debt will also become more balanced as – from the State’s point of view – members of the public are reliable investors. Additionally, credit rating agencies regard the increasing percentage of internal financing in a favourable light; this was taken into account as a positive factor already at the time of the country’s upgrading in February, Mr Varga highlighted.
The Hungarian Government Securities Plus product offers high gains: 3.5 per cent after six months, 4 per cent after one year, and interest will incrementally increase by 50 basis points annually, meaning that gains will reach 6 per cent at the end of the fifth year, Mr Varga said, mentioning that in the case of an investment of one million forints, over a period of five years, an income amounting to as much as HUF 270,000 can be realised which is entirely free from tax. In practice this means that the full amount of the interest can remain with families and members of the public as they are not even required to pay personal income tax on their interest income, the Finance Minister explained.
Subscription will be very simple; members of the public only need an account. Subscription will be available online, in the branch offices of the Hungarian State Treasury and the Hungarian Postal Service, via the housing savings network, and also in branches of commercial banks.