Treasury issues state bonds with maturities of one and 10 years
The treasury will issue a 10-year and a one-year state bond in September. The interest rates are not yet known.
The Belgian Debt Agency announced on Monday that it will issue two new state bonds on 16 September. The bonds are intended for private investors, who can subscribe from 5 September. That is the day after last year’s popular, tax-friendly bond reaches its maturity date. Subscriptions can be made by bank or directly at the Agency.
The interest rates will not be announced until 3 September. A net interest rate of around 2 per cent is expected on the one-year bond. There will be no favourable tax regime for the new bonds.
Last year’s state bond raised a record amount for the Belgian state: 542,670 people subscribed for a total of just under 22 billion euros. This was mostly because of a favourable tax regime: in an attempt to push the banks for higher savings rates and more competition, the government reduced the withholding tax from 30 per cent to 15 per cent. For the new state bonds, the normal withholding tax of 30 per cent will apply.
The Debt Agency is competing with banks for the 22 billion euros that will be released in September from the previous state bond.
© BELGA PHOTO NICOLAS MAETERLINCK
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