Belgium's special one-year "Van Peteghem bonds" are expected to raise at least €1 billion for the Federal Government when they go on sale on 4 September this year, the Belgian Debt Agency has announced.
In remarks first reported by l'Echo, Debt Agency Director Jean Deboutte added that yields on the bonds will be revealed two weeks prior to their sale, on 22 August.
"We could raise at least €1 billion," said Deboutte. "The banks' estimates are going in this direction, and perhaps even higher."
Belgian Finance Minister Vincent Van Peteghem. Credit: Belga / Eric Lalmand
The bonds, named after Finance Minister Vincent Van Peteghem, offer an attractive alternative to the savings rates currently offered by Belgian banks.
Analysts predict that yields on the bonds will be somewhere in the region of 2.6%. By contrast, the best long-term total savings rate offered by banks in Belgium is 2.30%.
Related News
- Which Belgian banks offer the best savings rates?
- New Belgian government bond aims to compete with savings accounts
- How to avoid being scammed on your savings rates in Belgium
Furthermore, holders of the Van Peteghem bonds will benefit from a special reduction of the usual bond withholding tax rate from 30% to 15%.
L'Echo reports that a second one-year government bond with a similarly reduced withholding tax rate might also be issued in December. A final decision on this is expected in November.
Those interested in purchasing government bonds can find more information here.
