Bond to bail out state offers 50% return in 10 years

INVESTORS who bail out the state with their savings will earn a 50% return over 10 years under the terms of a new National Solidarity Bond.

Bond to bail out state offers 50% return in 10 years

The bond is intended to suck in cash to fund key infrastructural projects to help Ireland out of recession.

The Government does not expect to attract anything like the €15 billion pumped into SSIAs, but the long-term interest rates have been made unusually lucrative to soak up whatever spare money is still available.

While welcoming the move, ICTU general secretary David Begg warned the Government not to use the extra cash as a cover for cutting back on state funds already allocated to the capital building programme.

“They need to use it to do something extra, so that people know that by investing in this they are creating jobs and creating new infrastructure.”

The bonds will be available at post offices and via the internet from next Tuesday and offer the long-term saver major gains, but financial experts warned that those looking for five-year terms would be better off with existing products.

Finance Minister Brian Lenihan insisted the bonds would be a direct investment in jobs.

“Investors can play their part in supporting the economy through this bond which will help to fund the capital investment programme and develop important and necessary infrastructure, which in turn will help to create the conditions for the creation of additional employment.

“In return, the Government, acting through the National Treasury Management Agency, will provide a return on investment of 50% gross over 10 years. After tax the net return will still be a very rewarding 47.5%,” he said.

More in this section

Puzzles logo
IE-logo

Puzzles hub


Text header

From florist to fraudster, leaving a trail of destruction from North Cork, to Waterford, to Clare, to Wexford and through the midlands ... learn how mistress of re-invention, Catherine O'Brien, scammed her way around rural Ireland.

War_map
Execution Time: 0.218 s