Retail government securities market statistics of March underpin the fact that private investors put their savings in government securities in the long run as well, as evidenced by a particularly high amount of money reinvested in securities issued by the government.

In March, retail government securities bought amounted to HUF 300 billion and from this HUF 193 billion was reinvested. Net sales amounted to HUF 112 billion, this is the amount of new capital attracted by the retail government securities market.

The increase of the retail investors’ importance in financing sovereign debt is beneficial for the state as well, as they tend to spend the interest they earn Hungary, thus budgetary interest expenditure does not leave the country. The high rate of reinvestment makes financing more programmable and more predictable, which again strengthens the country’s stability.

Government securities are guaranteed by the State of Hungary, therefore they are perfectly secured. The Hungarian State Treasury offers free of charge account keeping services with web and smart phone applications. Moreover, no healthcare contribution has to be paid after the interests of retail government securities and in the case of Long-Term Savings Accounts, after 5 years maturity, there is no interest tax to be paid either.

(Ministry for National Economy)