State bond pulls €70m since May

OVER €70 million has been invested in the Government’s National Solidarity Bond since its inception in early May – with €20m of that being injected inside the last three weeks.

The bond – which is being run by the National Treasury Management Agency (NTMA) and sold via An Post – was officially launched on May 4 and acts as a savings product for small investors and a fundraising initiative for the Exchequer.

The early subscriber figures from the NTMA suggest that about 72 people are investing a combined €1.7m in the scheme on a daily basis; meaning that nearly 3,000 people have signed up to the savings option – something which justifies its creation, according to Co Limerick Fianna Fáil TD, Niall Collins.

“The idea behind the bond scheme was to encourage citizens to invest in an opportunity that would also provide money to the state to assist in stimulating the economy and help create more jobs.

“On the basis of the figures for the first eight weeks of the scheme, there is clearly a demand for this type of investment opportunity out there and there are a good number of people who have money saved,” said Mr Collins.

He added: “I hope the bond will continue to attract this level of investment and I’d encourage anyone who does have money available to look at this as a worthy and financially rewarding opportunity.”

Savers in the bond – which was first proposed in last December’s budget – can invest anything between €500 and €250,000 and will earn 1% interest each year and bonuses of up to 50% if they leave their money in the scheme for five, seven or 10 years.

The Government has already said investors will be entitled to “a final redemption bonus” when their investment matures, to encourage them to leave their funds invested for the full period.

The funds invested will also go towards providing the Government with additional money to “stimulate economic recovery and to assist in the maintenance and creation of employment”, according to the Department of Finance.

A spokesperson for the NTMA declined to comment on the office’s hopes and outlook for the bond, yesterday.

However, it is understood that there is no set target for the full size of the fund.


Lifestyle

Wesley O’ Regan is the General Manager of Popscene in Voodoo Rooms, Cork city. Popscene opened last November and is Cork’s only themed bar that is dedicated to celebrating the best of the 80s and 90s. https://www.facebook.com/PopsceneCork/You've Been Served: Wesley O'Regan, Popscene

More From The Irish Examiner