On Friday, 27 December 2019, the payment of the second coupon of the Republic of Serbia savings bonds was made to the cash accounts held with Postal Savings Bank, joint stock company, Belgrade, which were registered and paid between 20 November and18 December 2017, as well as the payment of principal for savings bonds with a 2-year maturity.
Savings bonds are long-term securities, issued by the Republic of Serbia, with a maturity equal to or greater than two years and which can only be purchased by resident citizens above 18 years of age.
Savings bonds are sold at nominal value. Income, i.e. yield from savings bonds is in form of a coupon that is paid out once a year.
The customer (savings bonds investor) can purchase a maximum of 5,000 pieces of savings bonds per one issue and one maturity date in RSD, or 500 pieces of savings bonds per one issue and one maturity date in EUR.
Purchase of, i.e. investing in savings bonds, is done directly, without intermediaries and without any fees, through the Postal Savings Bank business network.
Savings bonds can be redeemed before the maturity date under certain conditions, and they cannot be traded on the secondary market.
General terms and conditions for the issuance and sale of savings bonds are regulated by the Regulation on Amendments to the Regulation on General Terms and Conditions for the Issuance and Sale of Government Securities on the Primary Market ("Official Gazette of RS" No. 78/2017).
Registration and payment of savings bonds can be made during the access period in all Postal Savings Bank branches.
Only resident citizens above 18 years of age who hold a valid identity card can become savings bonds investors.
Savings bonds can only be registered to the investor's proprietary account opened through Postal Savings Bank with the Central Securities Depository and Clearing House (proprietary account for securities is opened and maintained free of charge).
Payment of coupons and the principal amount of savings bonds is made to a special money account for securities opened with the Bank (a dedicated money account for securities is opened and maintained free of charge).
Order for the purchase of savings bonds
Savings bonds can be purchased only during the access period, by issuing a purchase order, using the form prescribed by the Regulation.
A savings bonds investor is not entitled to interest in the access period and in the period prior to the day of registration of the savings bonds to the investor's proprietary account.
When issuing a purchase order, the investor can authorize up to five resident citizens above 18 years of age, who can submit a request for early payment of savings bonds in the event of investor's inability due to serious illness.
The presence of authorized persons is not required for granting authorization, but it is the investor's obligation to attach a photocopy of identity card of each authorized person.
The investor shall submit the list of authorized persons on the form prescribed by the Regulation at the time of issuing the purchase order, and subsequent substitution of authorized persons is not possible.
Confirmation of completed payment
The procedure for purchasing savings bonds ends with the issuance of a Certificate of payment for the purchase of savings bonds.
Withdrawal of submitted order for the purchase of savings bonds and paid funds is not possible.
The purchase of savings bonds is carried out according to the principle of priority, i.e. priority goes to the investor who, during the access period, is the first to sign the purchase order and make the payment.
If the entire volume of the issue of savings bonds is sold before the end of the access period, further acceptance of purchase orders and payments for that issue shall be suspended.
The savings bonds coupon (interest) payment is made once a year on the maturity date of the savings bonds, free of charge, to a dedicated money account for investor's securities opened with the Bank.
Savings bonds can be partially or fully redeemed before maturity. The period/deadline from which early payment is possible is determined by the decision on the issuance and the public invitation. In exceptional cases, early payment of savings bonds is also possible in a shorter period of time in the event of serious illness of the investor or a member of his immediate family. Serious illnesses are illnesses specified in the List of Serious Illnesses, which is an integral part of the Request for Early Payment in Case of Serious Illness Form.
A fee prescribed by the Regulation is charged for the early payment.
1. WHAT ARE SAVINGS BONDS?
Savings bonds are Republic of Serbia long-term securities with a maturity equal to or greater than 2 years, with a fixed coupon rate.
2. WHO CAN BUY SAVINGS BONDS?
Savings bonds can be purchased by investors - resident citizens above 18 years of age who hold a valid identity card.
3. IN WHICH CURRENCY AND TERM ARE SAVINGS BONDS ISSUED?
Savings bonds are issued in RSD and EUR with a maturity of 2, 3, 5 and 10 years.
4. WHY SHOULD I BUY SAVINGS BONDS?
By buying savings bonds, you are making a safe long-term investment with a competitive interest rate, which makes it possible to maintain and increase the value of the invested money and avoid the risk involved with other types of investments.
5. WHERE AND HOW TO BUY SAVINGS BONDS?
Savings bonds can be purchased in Postal Savings Bank branches during the access period.
6. WHAT DOCUMENTATION IS REQUIRED FOR THE PURCHASE OF SAVINGS BONDS?
In addition to identity card, the investor needs to have a proprietary account for securities and a dedicated money account for securities, which are opened with and maintained by the Bank free of charge. The investor receives and signs all necessary forms at the Bank's branch.
7. WHEN CAN I BUY SAVINGS BONDS?
The Ministry of Finance of the Republic of Serbia and the Public Debt Administration publish on their websites the Public Invitation for the sale of savings bonds of the Republic of Serbia, which specifies the beginning and end of the access period for the purchase of savings bonds. The access period is the period in which the investor submits an order for the purchase of savings bonds.
8. WHAT ARE THE COSTS OF PURCHASING A SAVINGS BOND?
The investor has no costs for opening and maintaining a proprietary and dedicated money account and for payment of interest coupons and principal for savings bonds.
9. WHAT IS THE PRICE OF A SAVINGS BOND?
RSD savings bonds are sold at a nominal value of RSD 2,000 per piece, while savings bonds in EUR are sold at EUR 100 per piece.
10. HOW MANY SAVINGS BONDS CAN BE PURCHASED?
An investor can buy a maximum of 5,000 pieces of RSD savings bonds per issue and maturity.
An investor can buy a maximum of 500 pieces of EUR savings bonds per issue and maturity.
11. PRIORITY PRINCIPLE WHEN PURCHASING SAVINGS BONDS?
According to the priority principle, the investor who first registers, pays and receives the Certificate of Payment of Savings Bonds has priority in the purchase.
If the entire volume of savings bonds issue is sold before the end of the access period, Postal Savings Bank will suspend further acceptance of purchase orders.
12. WHEN ARE INTEREST AND PRINCIPAL PAID?
An interest coupon is paid to the investor once a year on the issue date, and the last interest coupon and principal are paid on the maturity date of savings bonds.
A savings bonds investor is not entitled to interest in the access period and the period until the issue of savings bonds.
13. IS EARLY PAYMENT OF SAVINGS BONDS POSSIBLE?
Early payment is possible and the conditions are prescribed in the Public Invitation for the Sale of Savings Bonds of the Republic of Serbia.
The request for early payment of savings bonds is submitted in Postal Savings Bank branches.
In the event of a serious illness of the investor or a member of his/her immediate family, the necessary documentation is submitted along with the request for early payment of savings bonds.
14. CAN SAVINGS BONDS BE TRADED ON THE SECONDARY MARKET?
Savings bonds cannot be traded on the secondary market.
15. CAN THE INVESTOR AUTHORIZE OTHER PERSONS TO DISPOSE OF HIS/HER SAVINGS BONDS?
The investor can authorize up to 5 resident citizens to dispose of his/her savings bonds in the event of serious illness of the investor or a member of his/her immediate family.
The list of authorized persons forms an integral part of the savings bond purchase order. Subsequent submission and modification of the submitted list of authorized persons is not possible.
16. ARE SAVINGS BONDS TRANSFERRED TO THE HEIRS IN THE EVENT OF INVESTOR'S DEATH?
Inheritance of deceased persons is governed by the provisions of the Law on Inheritance and the transfer of savings bonds is carried out in accordance with the Rules of Business of the Central Securities Depository and Clearing House.
Additional information about the Bank as an Investment Company can be obtained by phone every business day from 8:00 to 16:00 at: +381 11 3024 292 and +381 11 3024 840, or send e-mail at email@example.com