ÁKK Cuts Premium on Inflation-linked Retail Security
The Government Debt Management Agency (ÁKK) has announced it will cut the premium on the new series of its inflation-linked Premium Hungarian Government Security (PMÁP) for retail investors from August 1, according to a report by state news wire MTI.
The new 2033/I PMÁP, the security's longest maturity yet, will pay a 0.25% premium over annual average inflation, or 14.75%, calculating with last year's CPI of 14.5%, ÁKK said.
Sales of the 2031/I PMÁP, which pays a 1% premium over inflation, and the 2028/L PMÁP, which pays a 0.25% premium, will cease with the rollout of the new series, it added.
With the measure, ÁKK said it aimed to extend the maturity of households' holdings of government securities.
ÁKK noted that households had subscribed gross HUF 2.129 trillion of the PMÁP papers in the first half of the year.
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