government securities
available at all K&H branches
- various returns, fix, step-up or floating rate coupons
- bonds issued after 1 June 2019 are exempt of interest rate tax
details
|
security |
government securities are secure form of investment |
|
liquidity |
they can be sold on the secondary market (securities market) at market price at any time |
|
flexibility |
wide range of tenors |
- government securities may be bought:
- on the primary market (the market where new issues are sold) by subscription, at auction or via tap issue depending on securities type
- on the secondary market (the market where securities already issued are bought and sold)
- tax payable on the income from government securities, classified as interest income, is deduced from clients in accordance with the prevailing legislation
- bonds issued after 1 June 2019 are exempt of interest rate tax persuant to the Hungarian Personla Income Tax Act
Government securities are kept on securities account.
|
Hungarian Government Bond |
Discount Treasury Bill (DKJ) |
1-year Interest-bearing Treasury Bond (1MÁP) |
Hungarian Government Security Plus MÁP+ |
PMÁP |
BMÁP |
|
|
type |
transferable, interest-bearing government security issued in dematerialised form |
transferable, noninterest-bearing government securities issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
|
dedomination |
HUF 10 000 |
HUF 10 000 |
HUF 10 000 |
HUF 1 |
HUF 1 from 29 September 2022 (previously HUF 1000) |
HUF 1 |
|
tenor |
3, 5, 10, 15, 20 or 30 years |
sold for a 3-,6- and 12-month-term in the primary market but they can be purchased for any remaining term in the secondary market within a year |
1 year |
5 years |
3-10 years |
3 years (previously 4,6 and 10 years which sale was ceased after 1 June 2019 by ÁKK- these tranches are not distributed by K&H Bank) |
|
interest |
typically a fixed-interest securities but floating rate versions are also issued |
non-interest-bearing |
fixed-interest-bearing security, with the coupon paid on maturity |
fixed-interest-bearing securities, with step-downup coupon rates coupon paid in securities - in the same tranch during the tenor and in cash on maturity |
floating-rate-interest-bearing securities, with annual coupon payment |
floating-rate-interest-bearing securities, with quarterly (previous tranches with annual) coupon payment |
|
return |
interest is paid annually or semi-annually |
equals to the discount rate, i.e. the difference between the face value and the purchase price |
varies by day subject to market price |
varies by day subject to market price |
varies by day subject to market price |
varies by day subject to market price |
|
distribution |
at auction |
at auction |
at face value during a-week-subscription period |
at face value during a-5-business- day-subscription period. |
daily tap issue |
daily tap issue |
|
stock exchange listing |
listed on the Budapest Stock Exchange following issuance |
the six-month and twelve-month discounted treasury bonds are listed on the Budapest Stock Exchange following issuance |
not listed at the Budapest Stock Exchange |
not listed at the Budapest Stock Exchange |
not listed at the Budapest Stock Exchange |
not listed at the Budapest Stock Exchange |
|
investors |
Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality |
Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality |
resident or non-resident natural persons |
resident or non-resident natural persons |
resident or non-resident natural persons |
resident or non-resident natural persons |
We draw your attention to the consumer protection website of Financial Navigator Advisory of the National Bank of Hungary where you can find useful product descriptions and various applications for comparison (loan calculator, budget calculator for households).