In the Republic of Moldova, the Government Securities market was set up in 1995. Since then, the Ministry of Finance, as the issuer of Government Securities, in cooperation with the National Bank of Moldova, as the fiscal agent of the state, has undertaken several measures in order to develop a modern financial market.
The Ministry of Finance issues on the domestic market two types of Government Securities:
Treasury bills – short term Government Securities, issued at a discount and redeemed at the face value at maturity, having maturity up to one year (91, 182 and 364 days);
Government bonds – long term Government Securities (one year and more) with the floating or fixed interest rate. Interest (coupons) on government bonds is paid periodically. Government bonds are issued at discount, at face value, or with premium and are redeemed at face value at maturity.
The sale auctions for Government Securities are usually in the first and third week of each month, conducted in accordance with an indicative calendar developed and approved quarterly by the Ministry of Finance.
The conditions of the Government Securities issuance/early redemption, payment of interest and redemption, as well as the identification elements of the issuances are established in the announced communique of the Government Securities.
Individuals and legal entities, resident or non-resident of the Republic of Moldova, may participate in the auctions only through primary dealers.
Expenditures for honoring commitments to service the state debt, according to the current legislation, are a priority. Thus, since the establishment of the Government Securities market, the state has always honored its payment obligations for the redemption of the Government Securities or interest, which are characterized by zero risks.