As of Monday, Lithuanian Residents Will Be Able to Purchase Government Savings Notes
The Ministry of Finance resumes the distribution of the Government savings notes (GSNs). Starting this Monday, a new one-year GSN issue with a 3.7% annual interest rate will be distributed.
The savings notes will be distributed via two distributors selected by the Ministry of Finance – Swedbank and SEB. The terms and conditions for the GSN issue established today stipulate that the first issue of the savings notes will be distributed on 7-21 August and will be redeemed on 22 August 2024.
"Savings notes are a safe and simple short-term investment method. As of Monday, they will be distributed again, thus expanding the opportunities for residents to choose where to invest the accumulated funds. Purchasing savings notes is not only useful enough, but at the same time, people lend to the state, which uses their money to finance public services," says Minister of Finance G. Skaistė.
GSNs are the Government securities to be purchased solely by natural persons. It is a safe investment that generates returns, similar to term deposits with a bank, only in this case the residents would entrust their savings to the Government. In turn, GSNs is an opportunity for the Government to form one more borrowing instrument – to borrow from residents directly and thus attract the residents’ savings not invested elsewhere.
The GSNs interest rates for each issue will be set taking into account the appropriate term average Government borrowing rate on behalf of the State, they will be fixed no later than one working day before the start of placement of savings notes and published together with other GSN issue distribution terms and conditions on the website of the Ministry of Finance. The preliminary schedule for GSNs issue will be updated monthly and also published on the website of the Ministry of Finance.
Anyone willing to purchase GSNs will be able to do so through the distributors chosen by the Ministry of Finance, Swedbank or SEB, on their online bank with a few clicks of buttons. SEB will make it possible to purchase GSNs in bank branches as well.
When the time comes to redeem the GSNs, the investor will not have to do anything – the money for the redeemed GSNs and the interest due will be automatically transferred to the same account from which the payment for the purchased GSNs was made.
More information about savings notes, determining the terms and conditions for their distribution, the issue release schedule and other frequently asked questions is available here.
Additional information:
• The Government borrowed directly from residents, by placing the GSNs, with intervals from 1999 to 2021.
Last updated: 07-08-2023
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