Under specified conditions2, UniCredit Bank quotes daily purchase rates for the series of the Premium Hungarian Government Bond, thus they can be sold easily prior to their maturity.3
Please note that the government security fits a long-term investment much better in the case of a Retirement Saving Account (NYESZ).
The interest rate tax can be reduced and exemption may be granted if the given series is purchased through a Long-term Investment Contract.
Invest a minimum HUF 5 million in the Premium Hungarian Government Bond and enjoy the advantages of the UniCredit Premium Banking services!
The receivable embodied by the Premium Hungarian Government Bond will not lapse towards the Issuer i.e. the Hungarian State. At the end of the term, the interest rate will be credited to the client’s account. together with the principal, after the deduction of the interest rate tax. The interest rate income from the Premium Hungarian Government Bond is taxable; the tax rate for the interest income is 15%.
This information is not exhaustive and shall not be considered as an offer, recommendation or investment advice; its only purpose is to call your attention. For the detailed conditions see the business policies and lists of conditions of UniCredit Bank and the official documents of the Issuer (the Brochure and Public Offering applicable for the Premium Hungarian Government Bond of the given series). The distributor of the government bond is UniCredit Bank Hungary Zrt. (Activity Licence No.: I-1523/2003, a member of the Budapest Stock Exchange), which reserves the right to change the conditions. This information is a commercial communication as per Act CXX of 2001 on Capital Markets. Please take note that the tax law consequences of the investment may only be accurately judged after consideration of the client’s individual circumstances, and they are subject to change over time.
1 Each series provides an interest rate premium that differs by series for the calendar year preceding the year when the interest rate was specified in excess of the annual average consumer price index as the interest rate base, expressed as a percentage, and published officially by the Central Statistical Office. The interest rate premium is defined for the given series in the Public Offering.
2 For further information on the conditions of government securities quotation please see section 5.2.2 of the General Rules of Business regarding Investment Services and Ancillary Services and the Premium Hungarian Government Bond Brochure.
3 The price of the government securities is influenced by the changes of the market yield. If the investor sells the securities prior to the maturity then, in the event of increasing yields, the price of the government securities may fall below the original purchase price. It may mean that, for interest-bearing bonds, upon the sales, the buyer pays the time-proportionate interest rate to the seller for the period that has passed since the last interest payment, but the net price, i.e. the price for the principal, may fall below the value as of the date of purchase so the investor may suffer a rate loss. If the investor keeps the securities until maturity, it will receive the annual yield recorded upon the purchase since the market price change that occurred during the term will not appear in the investment, only in the event of sales prior to maturity.