Belfius declines direct financing to Walloon cities after breakthrough by far left
State bank Belfius has chosen not to provide direct financing to the Walloon city of Mons following the inclusion of the far-left PVDA in its new governing coalition. Financial constraints have also led the bank to withhold additional funds from Liège and Charleroi, De Tijd and L’Echo report.
The Walloon government has faced significant challenges in securing financing for debt-ridden cities. The issue came to light during efforts to raise 356 million euros under the Oxygène plan, an initiative aimed at easing the financial burdens of heavily indebted municipalities.
While the region approached Belgium’s four major banks for support, only ING Belgium responded, committing to 82 million euros but excluding seven cities from its financing.
In response, the Walloon government turned to Belfius to help bridge the funding gaps for the excluded municipalities. Belfius agreed to provide 30 million euros, enough to finance Ath, Namur, La Louvière and Verviers. However, the bank declined to offer additional support for Mons, Liège and Charleroi, where over 200 million euros is still required.
For Liège and Charleroi, Belfius cited financial concerns as the reason for withholding funds. However, the situation in Mons is more politically charged. The recent formation of a coalition government in Mons, which includes the the far-left PVDA alongside socialists PS and green party Ecolo, prompted Belfius to withdraw.
According to a source familiar with the file. “That was an exclusive condition of Belfius. No financing for Mons with the arrival of the PVDA in the new majority.”
Belfius has declined to comment on the decision.
© PHOTO BELGIAN FREELANCE
Related news
