Since the beginning of 2023, Romanian households purchased Government debt listed (Fidelis) or not listed (Tezaur) on the Bucharest Stock Exchange (BVB), denominated in local or foreign currency, in the amount of the equivalent of RON 6 bln (EUR 1.2 bln), Economica.net reported.

The coupons attached are above the interest rates paid by banks, and furthermore, the interest generated by the state debt is not subject to income tax, as opposed to the interest generated by bank deposits.

When it comes to local currency bonds, 72,084 individual investors purchased state debt worth RON 2.788 bln – meaning an impressive average of some RON 38,000 (EUR 7,600) per investor.

Interest rates ranged from 7.35% to 8%, depending on maturity (1-3 years). The coupon attached to bonds denominated in euros ranged between 3.7% and 5.8% (five years).

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andrei@romania-insider.com