Treasury Bonds are debt securities issued by the Guatemalan government to raise private funds, for which it pays an interest rate previously agreed upon with investors, with the exception that since 2017, specific issues have been made for individuals called Bonds for Small Investors.
The investment methods and other conditions for this year are contained in Chapter 2 of Government Agreement 48-2024, Articles 24 to 28, published on April 9.
CONTENT FOR SUBSCRIBERS
According to Minfin, the total amount of Treasury Bonds awarded this year, including those made through Public Bids and Auctions, amounts to Q6,955.87 million, as of July 3. The amount authorized for the small investors segment for this year is Q500 million, of which Q37.36 million have been placed, according to the latest information.
“The Minfin will continue to offer Treasury Bonds under the Window mechanism expressed in Quetzales, through stockbrokers. The profitability that these securities will enjoy will be 6.0000%, 6.1250% and 6.2500% for the maturity dates of 05/21/2025, 05/20/2026 and 05/19/2027, respectively,” the ministry added.
The steps to invest
The Minfin emphasizes that the placements of these bonds are only carried out directly with authorized stockbrokers, which according to the entity can be found at the link:
This link is part of the website of the National Stock Exchange, SA (BVN), where the authorized stockbrokers that offer the mentioned bonds are registered. In this sense, lin BVN explains Frprocedure, and the first thing you should know is That, to acquire Treasury Bonds represented by book entry, there are three different terms: one, two and three years.
1. Determine the amount of your investment
Take into account that the minimum value to acquire is Q10 thousand and then in multiples of Q1 thousand, up to a maximum of Q500 thousand for each fiscal year (each year).
2. Contact a stockbroker
Select the Stockbroker of your choice from the list of agents on the BVN and contact him/her to obtain information on the requirements and costs prior to making the investment.
The requirements are usually the same as those required to open a bank account, such as the Personal Identification Document (DPI), utility bills, and filling out the Intendencia de Verificación (IVE) form. However, this may vary depending on each institution.
3. Submit the Purchase Order
The stockbroker proceeds to present the order to purchase the securities, representing the small investor.
4. Liquidation of funds before the Ministry of Public Finance
On the previously established settlement date and at the corresponding times, the agent makes the settlement of the funds (payment) to the Ministry of Public Finance.
5. Accreditation of interests
The interest earned on your investment will be credited on each payment date in the check investor’s banking.
Conditions
It is established that bonds in general may be negotiated with individuals and legal entities, but in the case of small investors, they are only individuals.
The first placement of bonds for small investors took place in November 2017 and since that year, the Organic Law of the State Budget includes a regulation called Democratization of Public Debt, which promotes this option for this segment.
CONTENT FOR SUBSCRIBERS
Initially, a maximum limit of Q100 million was established, but for 2022, 2023 and 2024 it was set up to Q500 million, making it an alternative option to savings and other investments.
Regarding the rates of interest refers to the fact that they are higher than those normally offered by conventional savings for these amounts and terms, since the passive rates of banks are usually much lower.
Furthermore, the interest generated by these types of securities issued by the State is permanently exempt from taxes, while conventional private debt securities are subject to 10%.
“Given that for this year the rates offered by Treasury Bonds for small investors are above the rates offered for these same terms starting in the second half of 2023, we expect the demand for them to increase. In addition, every year there are more investors who are informed regarding this opportunity,” explains Rolando San Román, general manager of BVN, in response to questions from Free Press.
The placements of these bonds in previous fiscal years closed as follows: Q8.4 million in 2017; in 2018, Q17.8 million; in 2019, Q25.7 million; in 2020, Q49 million 567 thousand; in 2021 the quota of Q100 million was filled; in 2022 it was Q150.5 million; and in 2023, Q134.3 million, according to data provided by BVN.
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