1. What are state bills and state bonds?
State bills and state bonds are debt instruments issued by the Republic of Macedonia. They enable the government to borrow funds in return for interest paid to the purchaser of the state bills or state bonds.
2. Who can buy state bills and state bonds?
All legal entities and individuals, both resident and non-resident, can buy state bills and state bonds through the domestic banks. The minimum amount to be subscribed is MKD 10,000.00.
Important notice to non-residents: non-resident legal entities and individuals who want to participate in the auction have to register with the Central Securities Depositary before they participate in the auction.
3. How much do state bills and state bonds cost?
The funds placed as state bills and state bonds bear fixed interest, the level of which is determined by the market conditions. The client determines the price at which he/she wants to buy state bills and state bonds. ProCredit’s fee for this transaction is 0.12% of the nominal amount subscribed, but not less than MKD 300.
4. What is the procedure for buying state bills and state bonds?
a) Before the auction day
The Ministry of Finance issues a calendar of auctions for the first half of the year. At its premises, ProCredit Bank displays the calendar and the prospectus (offer) for the auction of state bills and state bonds which NBRM defines and publishes at 14:30, four working days before the auction.
Clients (account holders) of ProCredit Bank who want to participate in the auction can do so by filling in the application form "ProZapis3" as soon as the prospectus is displayed at the bank’s premises, but no later than one day before the day of the auction. The clients themselves state the prices for the state bills and state bonds, according to the market prices. If one participant has several offers at different prices, he/she should list all of these in the application form.
Client Advisers will then calculate the discounted amount according to the data in the application form. The client then pays the specified amount (the discounted amount) into ProCredit’s special internal account and signs the application form.
b) Auction day
The auction of state bills and state bonds takes place according to the published calendar, between 11:00 and 12:00. The results of the auction are announced by NBRM to ProCredit Bank between 13:00 and 13:30, after which ProCredit Bank immediately informs its clients about the outcome.
c) The day after
The Central Securities Depositary keeps track of all purchased state bills and state bonds. On the day after the auction, it must inform clients who have purchased state bills and state bonds about their ownership.
5. Maturity day
On maturity day, ProCredit Bank will credit the nominal amount of the subscribed state bills and state bonds to the account of the client, minus ProCredit Bank’s commission.