The window has opened to invest in the latest round of Belgian State bonds. But who is entitled to purchase them and what is the process?
Subscriptions opened on Monday 25 November for one-year and eight-year State bonds. The window for private individuals to invest in the bonds will close on Tuesday 3 December. The Belgian State will then issue the bonds on 4 December.
People buying bonds lend their money to the Belgian Government for an agreed number of years. In exchange, the State pays lenders an agreed amount of interest, in addition to repaying the initial loan.
The interest rates for the latest bonds were announced by the Federal Debt Agency last week, set at 2.20% for a one-year bond, and 2.80% for an eight-year bond.
Who can buy bonds?
State bonds are issued four times a year (March, June, September and December) and are aimed at private investors.
This includes anyone who has Belgian nationality, has their place of residence or domicile in Belgium, or who has equivalent rights of registration under European regulations.
Companies or financial institutions cannot invest in State bonds. However, it is possible for foundations, non-profits, and religious institutions to buy them.
The bonds are generally aimed at private investors and can be bought in increments of €100 with a €100 minimum investment, making it accessible to individuals with smaller investment pots.
You do not need to have a Belgian bank account to purchase State bonds, as you can make your initial investment and receive your refund and interest using a foreign account number.
It is also possible for children to invest in Belgium's State bonds. Children aged over 12 can use their own e-ID to purchase bonds, and parents can purchase State bonds in the name of their children (including those under 12 years of age who do not yet have an e-ID).
How do you buy bonds?
Belgian State bonds can either be bought through the online portal, known as the General Ledger, or via your bank.
The General Ledger is operated by the Service des Grand-Livres, part of the Federal Government Debt Support Service. You can log into the online portal using an identification key such as 'itsme' or eID, and fill in details including the amount you want to invest, who the holders of the bond will be, and your bank account number.
At the end of the registration, you will receive the payment instructions. Depending on the amount, you can choose a transfer or pay with a bank card.
Banks and other financial institutions in Belgium may also offer services to their customers to help them purchase State bonds. However, purchasing bonds via a bank may come with additional charges.
The subscription window may also vary depending on where State bonds are purchased. For bonds issued on 4 December, the subscription period ends on Monday 2 December through the Ledger service, and Tuesday 3 December for those going through financial institutions.
