Government bonds

About

Having the role of financing the Romanian State debt, government securities, from the perspective of an individual/legal person investor, can be seen as a saving alternative to bank deposits and/or money market funds.

The risks associated with investing in government bonds are very low, almost equal to zero. Also, investing in such financial instruments benefits from the intrinsic guarantee offered by the issuer (Romania - through the Ministry of Finance), a guarantee that extends to all funds invested in these instruments.

As a rule, the nominal value of government securities is 5,000 or 10,000 lei, 1,000 EURO or 2,000 USD for those in foreign currency.

There are two main categories of government bonds:

Short-term government bonds – treasury certificates with discount, maturing up to 1 year (6 months, 9 months, 1 year). These are government securities that an investor buys at a price lower than the nominal value, following that at maturity they receive the nominal value, the difference between the two values representing the investment gain;
Medium or long-term government bonds – are government bonds with a maturity of over 1 year, sold at the nominal value at which the state pays an annual interest (called in this case COUPON). As a rule, the coupon payment is made annually, on the anniversary of the issuance, according to the conditions in the issuance prospectus.

The purchase of government securities can be made in the following two ways:

Their purchase from the primary market – through Banca Transilvania in its capacity as primary dealer on the government securities market - the procedure is unusual for PF/PJ clients;
Their acquisition from the secondary market – previously issued securities already in circulation - the procedure by which, as a rule, due to lower costs, individual clients or non-financial companies purchase government securities.

Trading conditions

Filling in and signing, as applicable, the specific contracts (financial investment contract, custody contract) and their annexes, including the complete provision of data and information requested through the account opening application;
Information on the Segregation of financial instrument accounts
PDF
Reading and acknowledgment (by a handwritten signature) of the MIFID presentation document;
Completion of questionnaires (profiling/appropriateness) presented at the initiation of the relationship/purchase of an investment product (in this case government bonds);
Holding the amounts of money/financial instruments in the specific accounts necessary for carrying out transactions (including the equivalent of related commissions and/or any other fees owed).

In case the client is a legal entity, they will be able to carry out transactions only after acquiring a LEI Code (unique identification code of legal entities).

LEI code represents a unique 20-character identifier, mandatory for a legal entity conducting a financial transaction.

Romanian and foreign legal entities can check the following Internet pages for additional information:

Secondary market quotations

See the table of all secondary market quotations