government securities
available at all K&H branches
- various returns, fix, step-up or floating rate coupons
- bonds issued after 1 June 2019 are exempt of interest rate tax
details
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security |
government securities are secure form of investment |
|
liquidity |
they can be sold on the secondary market (securities market) at market price at any time, however, please note that from 6 March 2025 K&H Bank will be obliged to purchase up to HUF 50 million nominal value per shareclass and per investor per (subscription) day of the Premium Hungarian Government Bond shareclasses. |
|
flexibility |
wide range of tenors |
- government securities can be purchased through:
- primary market (the market where new issues are sold) at auction or via tap issue depending on securities type
- secondary market (the market where issued securities already in circulation)
- tax payable on the income from government securities, classified as interest income, is deduced from clients in accordance with the prevailing legislation
- bonds issued after 1 June 2019 are exempt of interest rate tax persuant to the Hungarian Personal Income Tax Act
Government securities are kept on securities account.
|
Premium Hungarian Government Security (PMÁP) |
Bonus Hungarian Government Security (BMÁP) |
Fix Hungarian Government Security (FixMÁP) |
|
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type |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
|
dedomination |
HUF 1 from 29 September 2022 (previously HUF 1000) |
HUF 1 |
HUF 1 |
|
tenor |
3-10 years |
3 and 5 years (previously 4, 6 and 10 years which sale was ceased after 1 June 2019 by ÁKK- these tranches are not distributed by K&H Bank) |
5 years (3-year maturities were also issued between 09.01.2024 and 30.09.2025) |
|
interest |
floating-rate-interest-bearing, annual interest rate linked to inflation the rate of interest payable is the interest base plus an interest rate premium interest rate base: the percentage rate of change in the consumer price index (inflation) in the year preceding the year in which the interest rate is set |
floating rate linked to the average yield of the Discount Treasury Bill auctions, with quarterly interest payments the rate of interest payable is the amount of the rate base plus an interest rate premium 'interest rate base' shall mean the arithmetic average of the average yields at the date of determination of the interest rate applicable to the relevant interest period and the total of four successful auctions of discount Treasury bills with a residual maturity of 3 months held on and before the date of determination of the interest rate applicable to the relevant interest period, weighted by the volumes accepted in the auction the interest rate determination dates and the interest rate are set out in the Factsheet |
fixed-interest-bearing, quarterly interest rate |
|
return |
varies by day subject to market price |
varies by day subject to market price |
varies by day subject to market price |
|
distribution |
daily tap issue, with annual sales periods |
daily tap issue, with annual sales periods |
daily tap issue, with variable sales periods of less than one year |
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stock exchange listing |
not listed at the Budapest Stock Exchange |
not listed at the Budapest Stock Exchange |
not listed at the Budapest Stock Exchange |
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investors |
resident or non-resident natural persons |
resident or non-resident natural persons |
resident or non-resident natural persons |
|
target market |
customers with expenses and income in Hungarian forints |
customers with expenses and income in Hungarian forints |
customers with expenses and income in Hungarian forints |
|
sales limit |
yes |
yes |
yes |
|
Hungarian Government Bond (MÁK) |
Discount Treasury Bill (DKJ) |
Hungarian Government Security Plus (MÁP Plus or MÁP+) |
|
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type |
transferable, interest-bearing government security issued in dematerialised form |
transferable, noninterest-bearing government securities issued in dematerialised form (registered electronically) |
transferable, interest-bearing government security issued in dematerialised form (registered electronically) |
|
dedomination |
HUF 10 000 |
HUF 10 000 |
HUF 1 |
|
tenor |
3, 5, 7, 10, 15, 20 or 30 years |
sold for a 3-,6- and 12-month-term in the primary market but they can be purchased for any remaining term in the secondary market within a year |
5 years |
|
interest |
typically a fixed-interest securities but floating rate versions are also issued |
non-interest-bearing |
fixed-interest-bearing, annual interest rate interest is paid during the maturity period in government securities of the same series as the government securities paying the interest, with a credit to a securities account, and at maturity in forint |
|
return |
interest is paid annually or semi-annually |
equals to the discount rate, i.e. the difference between the face value and the purchase price |
varies by day subject to market price |
|
distribution |
at auction |
at auction |
daily tap issue, with quarterly sales periods |
|
stock exchange listing |
listed on the Budapest Stock Exchange following issuance |
the six-month and twelve-month discounted treasury bonds are listed on the Budapest Stock Exchange following issuance |
not listed at the Budapest Stock Exchange |
|
investors |
Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality |
Discount Treasury Bills may be purchased by natural and legal persons, other entities without legal personality |
resident or non-resident natural persons |
|
target market |
resident or non-resident natural persons, without limitation |
resident or non-resident natural persons, without limitation |
customers with expenses and income in Hungarian forints |
|
sales limit |
no |
no |
yes |
We draw your attention to the consumer protection website of Financial Navigator Advisory of the National Bank of Hungary where you can find useful product descriptions and various applications for comparison (loan calculator, budget calculator for households).