Retirement bonds planned by the government may be priced similarly to baby bonds that carry a 3 percent premium over inflation, Finance Minister Mihaly Varga said on Wednesday, the 22nd of November.
A cityscape of Budapest seen from the Fisherman's Bastion, in Budapest, Hungary. (Photo: VCG)
The premium could vary depending on the age of bond buyers, Varga said on the sidelines of a conference of the Association of Hungarian Insurance Companies (Mabisz).
The long-term bonds would mature when their owners reach retirement age and would either be paid in a lump sum with interest or in monthly installments.
The minister added that the government was planning to launch the retirement bond to complement already available retirement savings schemes such as private pension funds. He said the new bond would be aimed at retail buyers rather than institutional investors.
Meanwhile, Varga said Hungary still aimed to lower the share of FX debt in its total debt stock further, as well as the share of foreign investors holding Hungarian government debt. It is not in Hungary's interest to issue either a euro or a dollar bond at the start of the year, he added. The minister also said Budapest is still in touch with partners in China, where it issued panda bonds in July.
