ZAGREB, May 16 (Hina) - The government will seek new loans on the domestic market by issuing bonds amounting to 150 million euros, it was decided at a session on Thursday.
ZAGREB, May 16 (Hina) - The government will seek new loans on the
domestic market by issuing bonds amounting to 150 million euros, it
was decided at a session on Thursday. #L#
The three-year bonds will finance the transition costs of the
pension reform, Deputy Finance Minister Damir Kustrak said. The
total transition cost of the pension reform is estimated at 2.4
billion kuna.
The bonds will be issued on May 23. Kustrak announced two more
issues, in September this year and at the end of this year or the
beginning of next.
The bonds to be issued on May 23 will have a fixed interest rate of
6.875 percent. Pension funds will have the right to the pre-emptive
purchase of up to 70 percent of the amount while the rest will be
bought by three banks which are conducting the issuing - Commercial
Bank Zagreb, Raiffeisen Banka, and Zagrebacka Banka.
(hina) rml sb