Belgian state raises almost 40 million euros with bonds issue
The latest government bonds issue has proved a great success. The bonds that were issued by the Federal Debt Agency on 4 June raised 39,574,100. This is the highest sum raised by a government bonds issue in Belgium for 10 years.
By issuing government bonds, the treasury raises money from private individuals to finance public debt. The success of any bonds issue is mainly determined by difference between the interest offered on the bonds and the interest rate offered on savings account. In recent years enthusiasm for government bonds among the general public had waned due to the relative low interest rates that were on offer. The previous bonds issue was more than three years ago in March 2019.
The bounds issued on Saturday are for an investment term of 5 or 10 years. Those investing in the 5-year bond will receive an interest rate of 0.70%, while those investing for 10 years will receive an interest rate of 1.30%.
With almost 40 million euros was raised through the bonds issue the Federal Finance Minister Vincent Van Peteghem (Flemish Christian democrat) says that he is "satisfied that many people have found their way to the guaranteed and safe investment that a government bond offers".
The Federal Debt Agency is planning new bonds issues this year on 4 September and 4 December.