Government bonds

About

Having the role of financing the Romanian State'sdebt, government securities, from theperspective of a physical/legal investor, can be seen as analternative to bank depositsand/or monetary investment funds.

The risks associated with investing ingovernment securities are very low, almost zero. Also, the investmentin such financial instruments benefits from the intrinsicguarantee offered by the issuer(Romania - through the Ministry of Finance), which is guaranteed on all funds invested in these instruments.

As a rule, the nominal value of government securities is 5,000 or 10.000 lei, 1.000 EURO or 2.000 USD for those in foreigncurrency.

There are two broad categories of government bonds:

Short-term government securities - are Treasury discount certificates with a maturity up toat 1 year (6 months, 9 months, 1 year). These are government securities that an investor buys at a price lower than theirface value , but at maturity they fall below their face value, the difference between the two values represents thegain on the investment;
Medium or long-term government securities - government bonds with a maturity over 1 year, soldatThe coupon is usually paid annually, on the anniversary of the issue, in accordance with the terms of the issue prospectus.

The purchase of government bonds can be done in the following two ways:

Purchasing them on the primary market - through Banca Transilvania asa primary dealer on the government securities market - is an unusual procedure for PF/PJ clients;
Their purchase on the secondary market - previously issued securities already incirculation - is aprocedure where, as a rule, due tolower costs, individual customers or non-financial companies purchase government securities.

Trading conditions

Completing and Signing after case, of specific contracts (contract of investment financial, custody contract) and their Annexes, including Providing Full of the data andInformation Requested through the application openingconet;
Information on segregation of accounts of financial instruments
PDF
Reading and acknowledging (with a signature) the MiFID presentation document;
Completion of questionnaires (profiling/suitability) submitted at the beginning of therelationship/purchase of an investment product(in this case governmentsecurities);
The holding of the sums of money/financial instrumentsand the specificamounts required to carryout the transactions(including the value of therelated commissions and/or any other fees due).

Ifthe customer is a legal person, he/she can only enter intotransactions afteracquiring an LEI Code (unique identification code for legal persons).

The LEI code is a 20-digit unique identifier which is mandatory for a legal person carrying out a financial transaction.

Romanian and foreign legal entities can check the following websites for further information:

Secondary market quotations

See the table of all secondary market quotations