Almost €9 billion worth of the special one-year "Van Peteghem bonds" have already been purchased despite only going on sale on Thursday morning.
"These figures are well above expectations and confirm the pace of the first day," l'Echo quoted Belgian Debt Agency Director Jean Deboutte as saying on Monday. He added that €4.6 billion worth of bonds have been purchased directly through the Agency while €4.2 billion have been bought indirectly via Belgium's commercial banks.
The announcement means that renowned economist Bruno Colmant's earlier forecast that up to €20 billion in Van Peteghem bonds could eventually be sold remains a high possibility. Last week, De Tijd quoted Agency Director Jean Deboutte as "not ruling out" Colmant's prediction.
Deboutte also said last week that high demand for the bonds has eased concerns over Belgium's soaring levels of public debt. In particular, he noted that their successful sale means that the Federal Government will probably not need to raise additional funds through more traditional financial instruments such as Linear Ordinary Bonds (OLOs).
The special one-year bonds, named after Finance Minister Vincent Van Peteghem, offer an attractive alternative to the savings rates currently provided by Belgian banks. Their effective yield is 2.81%, well above the long-term savings rate offered by most commercial financial institutions.
