Experts consider the Government’s decision to borrow from citizens through the issuance of bonds to be positive news, especially given the prevailing pessimism in the financial market.

The Ministry of Finance has announced the release of state bonds (Retail bonds), valued at 50 million euros, aimed at citizens, which will be available by the end of the year. The interest rate is expected to be competitive compared to traditional bank deposit rates.

TV news sources indicate that these bonds could activate the savings of citizens, which have been stagnant in banks, and suggest that this may prompt banks to adopt a different approach moving forward.

Professor Maja Baćović from the Faculty of Economics highlights the significant amount of deposits held by citizens and other entities in commercial banks.

“Conversely, investment opportunities in financial and other markets are not particularly appealing. With passive interest rates exceptionally low, targeting the savings that have remained almost dormant during this period is a reasonable strategy,” Baćović stated.

Former Finance Minister and Secretary General of the Montenegrin Employers’ Organization, Raško Konjević, expresses his support for this initiative.

He recalls that both Croatia and Northern Macedonia have previously executed successful bond offerings for their citizens.

“This initiative is advantageous for the substantial sums of money currently sitting in bank accounts with low passive interest rates, and I am confident that citizens will benefit from higher returns. It also serves as a message to banks to reconsider their strategies,” Konjević remarked.

With citizen and economic deposits reaching a record high of 5.3 billion euros, Baćović encourages investment in alternative markets.

“Consider the real estate market, along with precious metals, and other investment opportunities. While some options may lie beyond our borders, I believe the number of profitable investment instruments available domestically is somewhat limited,” Baćović added.

Konjević further emphasizes the importance of educating citizens about the bond issuance process to ensure its success.

“I am optimistic that, with proper campaigns, this initiative will succeed. The state will be able to secure funding at interest rates lower than those available in the international market. Citizens will find buying bonds to be a more profitable option than settling for current passive interest rates,” he concluded.

According to the Ministry of Finance, the funds raised will be utilized to meet obligations outlined in the state budget.