Croatia Readies for New Round of National Bonds to Boost Investment Opportunities.

The Ministry of Finance is preparing to launch a new round of national bonds with the hopes that they will be available on the market by the end of the month and attract significant interest. This initiative, as announced by Andrej Plenković, President of the HDZ party in March, aims to provide citizens with more opportunities to invest in state securities.

Over the years, national bonds and treasury bills have been popular among citizens looking for investment options. Despite an increase in household deposits in domestic banks, interest rates on these deposits are only up to 2.5%. However, it is expected that the new bond issue will offer higher potential interest rates, possibly around 3.4-3.5%.

The specifics of the new bond issue are yet to be finalized. Still, it is believed that those who invested in a three-month national treasury bill in February will receive their returns by May 30th. However, concerns have been raised about the timing of this new issuance under a technical government as it may affect strategies set out by the incoming government.

Citizens have already lent approximately €3.3 billion through national bonds since 2017, which accounts for about 6% of Croatia’s total public debt.

This new bond issue is expected to increase the share held by citizens in Croatia’s public debt portfolio at the end of May.

It remains to be seen how investors will respond to this latest offering from Croatia’s Ministry of Finance. Still, one thing is clear; there continues to be interest among citizens looking for ways to invest in state securities while maintaining their financial stability within domestic banks.