Premium Hungarian Government Securities
MATURITY:
8 years
INTEREST:
7,90%

General Information

Premium Hungarian Government Security is a registered floating rate, inflation-linked, dematerialised government security. Series issued on and after 30 September 2022 have a face value of HUF 1, while earlier series were issued with a HUF 1,000 denomination.

The annual interest rate is calculated as a sum of a variable interest base and the interest rate premium. Premium Hungarian Government Securities provides an interest rate premium, which may be different for each series above the interest base for the given interest period equals to the previous year’s Hungarian “Consumer Price Index” published by KSH (Hungarian Central Statistical Office). The interest rate premium of certain series are set in the Public Offering.

For series issued on and after 30 September 2022, a sales limit has been set for distributors, the amount of which will be specified in the Information memorandum and in the Public Offer of certain series.

The claim incorporated by Premium Hungarian Government Securites will not become lapsed against the Issuer. Interest payment takes place annually. At the end of the term, the interest and the capital are credited on the client’s account together.

Premium Hungarian Government Securities issued after 1 June 2019 are tax free investments.

The interest income realized after Premium Hungarian Government Securities purchased before 1 June 2019 is qualified as taxable income, the tax rate is 15%. The interest tax can be reduced or exempted from payment, if the current series is placed on a Long Term Investment Account.

Government securities issued by the Hungarian State after 1 June 2019 are exempt from the obligation to pay social contribution tax on interest income, which will be introduced from 1 July 2023. In the case of Hungarian government securities put into circulation before 1 June 2019, a social contribution tax payment obligation arises if the government securities were acquired on or after 1 July 2023.

Customers of the Premium Hungarian Government Securities

Premium Hungarian Government Securities can be purchased by resident and non-resident individuals.

Mode of public offering

The current series of the Premium Hungarian Government Securities can be purchased by portioned issue. Premium Hungarian Government Securities are sold at face value plus accrued interest (based on the days passed from the issuance time to the purchase time).

For further terms and conditions of each series, please get informed from the Public Offer or the Information Memorandum for that series, which can be reached at in the tab of Current Public Offer.

Online sales, administration*

* To use the online sales services of the State Treasury, an electronic channel contract is required!