Government Savings Notes Distributed for EUR 65.7 Million
The distribution of the issue of the Government Savings Notes (GSNs) ended on Monday – residents purchased the GSNs in the amount of EUR 65.7 million, 4,303 transactions were concluded. Residents will be paid 3.7 % annual interest on this new one-year GSN issue.
"We are delighted that residents became interested in savings notes and actively invested in them. The results of the issue show that people trust the state and see savings notes as an alternative, safe way of investing, employing accumulated savings. The Government, in turn, will use the funds invested by the people to finance state functions. We are planning at least two more issues this year, so there will be more opportunities for residents to purchase savings notes," said Minister of Finance Gintarė Skaistė.
After resuming the GSN distribution this year, residents could purchase the first GSN issue on 7-21 August. This issue will be redeemed on 22 August 2024. The GSNs are distributed via distributors selected by the Ministry of Finance – Swedbank and SEB banks.
During the mentioned period, Swedbank concluded 3,466 contracts for the purchase of GSNs for EUR 51.2 million, SEB – 837 contracts for EUR 14.5 million. Most often, such amounts as EUR 20 thousand, EUR 10 thousand, EUR 5 thousand, 2 EUR thousand, EUR 1 thousand were invested into the GSNs.
The preliminary GSN issuance schedule envisages that the second issue will be distributed on 4-18 September and will be redeemed on 19 September 2024. The schedule is updated monthly and is also published on the website of the Ministry of Finance.
The GSN interest rates for this issue 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 GSN interest rates are set for each issue individually, taking into account the appropriate term average Government borrowing rate on behalf of the State.
The 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 commercial bank, only in this case the residents would entrust their savings to the Government. In turn, the 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.
Anyone willing to purchase GSNs during their emission will be able to do so via 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 (more information is available here and here).
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.
Frequently asked questions about GSNs are available here.
Last updated: 24-08-2023
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