Romania has launched an unusual blood-for-bonds program that offers donors access to government securities with yields above standard rates. According to reports from Bloomberg, the initiative has raised ₹2,800 crore (2.8 billion lei) since the beginning of 2025 while addressing blood shortages. The program provides donors with government bonds offering over 7% interest rates, which is a full percentage point above the going rate available to most retail investors. The initiative has attracted tens of thousands of people and has become a significant source of funding for the Romanian state. Ionut Nedelea, a 46-year-old project manager who donates blood four times a year, stated that while the process requires losing half a day for the actual donation, it's clearly worth it for the enhanced bond yields.
Governments worldwide are increasingly experimenting with novel ways to entice everyday citizens to buy bonds. As reported by The Economic Times, six countries issued new securities aimed at retail investors in the year through October 2025, with six more planning to follow. Households held 11% of government debt in 2024 across countries tracked by the Organization for Economic Cooperation and Development, over twice the share in 2021. In Japan, bond sales are booming as individuals reach for the highest yields in decades, with the country selling a record ¥5.14 trillion ($33 billion) in bonds to retail investors from April to September, representing an 84% surge from a year ago.
Japan has been using cartoon characters like Kokusai-sensei, the Government Bond Teacher, to drive sales for decades. According to The Economic Times, a new marketing campaign kicked off in August, pitching the investments as 'a plus for everyone'. Officials are also considering whether to allow bonds in tax-exempt accounts and might cut inheritance taxes on such holdings. The retail investor program in Romania, including the blood-for-bonds swap, provides close to a fifth of the government's entire borrowing needs. Romania's Treasury chief Stefan Nanu revealed that the government spends almost nothing to promote the program, as it launched in 2023 in partnership with a popular radio station, with television channels covering it at no cost to the government.
Retail investors tend to buy and hold bonds unlike hedge funds and foreign institutions that can race for the exit during times of turmoil. As reported by The Economic Times, Moritz Kraemer, chief economist at German lender Landesbank Baden-Wuerttemberg, noted that governments are trying to mop up any credit that they can get. However, skeptics argue that in most countries, the amounts invested are too small to make much of a dent in deficits. Governments must also consider that successful bond programs will drain money from consumer savings accounts, creating risks to banks and financial stability. Romania's situation is particularly acute, as it had the largest budget deficit in the European Union last year and has exceeded the EU's budget deficit limit of 3% of GDP every year since 2021, with its deficit reaching 7.9% of GDP in 2025.
