The coupon of fixed rate government bonds is announced and fixed on the issue date for the subsequent interest periods. For floating rate bonds, however, only the method and date of coupon re-set are determined in advance and the coupon rate is announced only for the given interest period.

The coupon payment frequency of Hungarian Government Bonds is annual or semi-annual. Government bonds will be issued after January of 2002 pay interest annually.

Government bonds are sold through either public issues or private placements. Government securities issued through private placement usually served special purposes, and the purpose of placement pre-determined the group of investors, to which the government security was sold. Examples of such bonds include bank, loan or debtor consolidation bonds intended to improve the solvency ratio and financial strength of banks. Nowadays, the share of privately placed government bonds is insignificant. All other securities are sold through public offerings. Thanks to the economic growth, the progress of the public finance reform, the increasingly clear-cut separation of the functions of the National Bank from fiscal functions, and also in line with the issuer's efforts to substantially increase the role of public issues, overwhelming majority of Hungarian Government Bonds has been publicly issued since 1997.

Hungarian Government Bond has been sold through auctions since 1996 and until 1998 it could have been bought twice a month through subscriptions as well. The auctions are held on the Thursdays of every even numbered week. At each auction, two types of bonds are offered for sale - the three year and the five year fixed rate bond at one auction and the three year fixed rate bond goes with the 10 or the 15 year fixed rate security at the next.

The minimum denomination of the Hungarian Government Bond is HUF 10,000. Since 12 April, 1999 the new series of the Hungarian Government Bond are issued in dematerialised form. Earlier the Hungarian Government Bond had book-entry form and it was printed in global notes deposited with KELER Plc. Investors may request physical delivery of the book entry series in secondary market trade. In that case, the issuer charges 2% of the face value for exchanging the global note into smaller denominations and for producing the securities. In addition the investment company may require a fee specified in its own Price Schedule.

Hungarian Government Bond is listed on the Budapest Stock Exchange on the issue date.

Hungarian Government Bond is available to resident individuals, legal entities and non-incorporated economic associations. These investors may trade government securities without limitations during the whole maturity period. Non-residents may buy and sell government securities throughout the whole maturity period under the terms and conditions specified in the relevant Hungarian legislation.

Primary dealers may buy Hungarian Government Bonds directly at auctions, while investors must give an order to primary dealers. For more information on sales methods please see Issuance and Trading.

The secondary market trade of government bonds may take place, for example, through primary dealers or the branch offices of the Treasury. For more information on the secondary market please see 5.4.2.