ZAGREB STOCK EXCHANGE ZAGREB, May 28 (Hina) - Croatian Finance Minister Mato Crkvenac and Zagreb Stock Exchange director Marinko Papuga on Wednesday signed a contract on introducing the first kuna government bonds into the market's
First Quotation.
ZAGREB, May 28 (Hina) - Croatian Finance Minister Mato Crkvenac and
Zagreb Stock Exchange director Marinko Papuga on Wednesday signed a
contract on introducing the first kuna government bonds into the
market's First Quotation. #L#
Trading in these bonds will start tomorrow.
These are government bonds worth a billion kuna, intended for
domestic institutional investors as well as citizens. They have a
fixed annual interest rate of 6.125 percent and the sponsors and
chief arrangers of the issue are Rijecka and Splitska banks.
Croatia's economy is stable, solvent and continually growing, and
this was a favourable situation for issuing the bonds, Crkvenac
said.
Last year's economic growth rate of 5.2 percent was among the
highest in the world, Crkvenac said, adding that the inflation rate
in the first four months was only 1.5 percent. Although the rate of
inflation for this year was estimated at 3.5%, the minister said it
would be lower, around 2.5 percent.
Crkvenac stressed that the first issue of kuna bonds was important
because it represented a benchmark for other issues and secured
long-term revenues.
This year's economic results are better than expected, which makes
it possible to secure the state's liquidity and solvency this and
next year, said the minister.
(hina) lml