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Weekly Lists
April 5, 2019 www.intellinews.com I Page 29
bne:Credit
Hungary launches attractive retail savings bond
Hungary’s government has decided to launch a five-year bond for retail investors available from June. The coupon on the bond will gradually rise from 3.5% in the first six months to 6% in the final year of its term, it was announced on April 3.
The coupon on the five-year bond will be 3.5% at the end of six months and 4% at the end of the first year, Finance Minister Mihaly Varga said. Afterward, half a percentage point will be added to the coupon each year, which means the bonds pay 6% in the final year of its term, he added.
The new retail bond will offer the highest yield in every state of its maturity period. To make it more attractive it will be exempt from capital gains tax.
Turkey’s credit rating is not presently at risk of a downgrade though a further fall in the Turkish lira (TRY) would be “very, very bad news” for the debt-fuelled country’s corporates and banks, S&P Global said on April 4.
“Further lira for the weakness going forward would be very, very bad news for corporates and therefore the banks,” Frank Gill, S&P’s top EMEA sovereign analyst, said in a webcast.
Bond traders were pleased with the outcomes of both the first round of the Ukrainian presidential election and the Turkish local elections at the weekend with their respective eurobonds rallying on the results.
“Ukraine and Turkish Eurobonds benefit from the elections outcome. Ironically the Ukrainian Eurobond market cherished the outcome predictability with [the incumbent] Mr [Petro] Poroshenko and [outsider and comic] Mr [Volodymyr] Zelenskiy going into
the second round of the presidential polls, while markets took
a positive note of Mrs [Yulia] Tymoshenko’s failure,” Raiffeisen Bank (RZB) analyst Gintaras Shlizhyus said in a note.
Turkey credit rating not at risk but further lira fall would be “very, very bad news”: S&P Global
Ukrainian, Turkish bonds rally on election results