Interest-free bond – a government security intended for a special purpose that has no fixed income, that is redeemed at par value, that cannot be publicly circulated, pledged or traded;
The purpose of interest-free bond issuance is defined by the Section 23rd, 1st Subsection, 31st Clause of the Immigration Law, which stipulates the right of a foreigner to request a temporary residence permit for a period of time not exceeding five years, if he or she purchases interest-free government securities intended for a special purpose with the nominal value EUR 250 000.
Interest-free bonds are issued according to the Regulation on Issuing Government Securities.
In order to receive temporary residence permit in the cases stipulated by the Section 23rd, 1st Subsection, 31st Clause of the Immigration Law the foreigner must submit to the Office of Citizenship and Migration Affairs (hereinafter – OCMA) documents defined by the Cabinet Regulations No. 564 „Regulations Regarding Residence Permits”, adopted on 21st June 2010. More detailed information about the procedure of submitting the documents can be found on website of OCMA.
The interest-free bonds are issued and granted to a foreigner only in cases, when he/she has received positive resolution of OCMA regarding the issue of a temporary residence permit and has paid for the interest-free bonds from his/her current account that has been opened in the credit institution or a branch of a foreign credit institution registered in the Republic of Latvia.