Hungary's government has approved a set of measures aimed at boosting the purchase of government securities by private individuals, rechanneling HUF 1.96 billion in additional funding to the State Treasury for this purpose.
The measures, which include setting up securities accounts for public employees with the State Treasury, were approved in a government resolution dated April 5 and published in the official gazette Magyar Közlöny late on Thursday.
The resolution calls for the National Economy Minister to take immediate steps so that the State Treasury can purchase the hardware necessary to expand and update the IT systems in order to meet the increased demand for government securities investments.
The resolution also instructs the Minister of National Development to review by April 10 ways to amend the public procurement act which would make most of the State Treasury's procurements related to securities distribution exempt from the public procurement regulations if the value is under the respective EU value limit.
The planned measures include opening securities accounts with the State Treasury for all public sector employees pending their approval and enabling them to purchase securities through their employers, with the necessary changes to regulations, by a deadline of May 31.
The related IT developments at the State Treasury should also be started by the end of May.
The resolution instructs the National Economy Minister to report back on many of the measures with an even shorter deadline of April 10.
The April 10 deadline applies to making it possible for individuals to open government securities accounts and trade the papers at government administration offices as well as through the government IT system, and to review ways to expand state-owned Magyar Posta's role in the distribution of government securities.
The economy minister should also instruct the Government Debt Management agency AKK to offer shorter-term and continues investment possibilities to private individuals, also by April 10.
The resolution also includes measures to increase marketing and make the State Treasury's distribution system more user-friendly, among others.
The HUF 1.96 billion earmarked for the measures will be rechanneled from the funds for extraordinary measures in the budget of the Prime Minister's Office, with immediate effect.