Fidelis spring bonds were recently listed on the Bucharest Stock Exchange, the Ministry of Finance managed to raise more than 3 billion lei, a record. The demand was very high. Romanians are eager to put their money in them, as the banking offer is not very good.
In addition, income tax is paid there, and if the amount exceeds 6 minimum salaries and KAS (with 6, 12 or 24 salaries).
So, in the face of inflation, many people decided to buy Fidelis government bonds. There was a special tranche for blood donors with an increased interest rate of one percentage point. Technically, it’s called premium. Now they can be bought on the stock market.
According to Stefan Nanu, director of the Treasury, Romanians hold about 30 billion lei in government securities, presumably including the Treasury.
As much as the state could provide, but it does so only for blood donors
Since there is a high demand of the population, the state is not interested in increasing the interest rate. Can offer more, the law allows. Did it instead, only with a tranche for donors.
The Ministry of Finance has a maximum level of premium that it provides at 1 percentage point above the cost of public funding.
“Therefore, we calculate the cost of financing the state at that moment, we look at the level of cost on the interbank market, to which we can add a maximum of 1%. We can’t let it go because we have it in the legislation,” Stefan Nanu, Treasury Director at the Ministry of Finance, told Rock FM a few weeks ago.
So, in this spring issue, Fidelis was given an additional percentage, but only for blood donors, this special tranche.
How much did blood donors pay?
According to the Ministry of Finance, there were more than 1,000 Romanians who signed up for 164 million lei.
How much money do banks make on Fidelis
Banks that are part of the brokerage syndicate take a commission. So, in the spring issue of Fidelis 2023, they earned about 6 million lei in total.
Last year, collected for all 4 editions, they collected more than 12 million lei.
Therefore, there is a demand among the population, and the special tranche for donors will continue. The next edition of Fidelis will be in the summer, the Ministry of Finance indicates July.
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.