After much speculation in recent weeks regarding when the next state bonds would be offered and for what terms, Finance Minister Vincent Van Peteghem has confirmed that the focus now is on long-term savings.
The Debt Agency will offer 5- and 8-year state bonds in December, Van Peteghem confirmed on Friday morning. This means that, at least for now, there will be no repeat of the special one-year government bonds. Its sale proved to be massively successful – it raised a colossal €21.9 billion for the Belgian State – but also raised concerns among some financial experts.
"The state bond has been a widely known financial product since its September issue. Many Belgians found their way to this safe and guaranteed investment, activating their savings," said Van Peteghem. From July to September, €28.5 billion was withdrawn from Belgian savings accounts, a withdrawal that was attributed primarily to the enormous demand for the last government bonds that were issued.
The issue will take place on Monday 11 December 2023. As always for state bonds with a maturity over several years, a withholding tax of 30% will apply.
Locking savings returns for long period
Earlier this month, Le Soir reported that a new one-year state bond would be available for purchase as early as 23 November, but Van Peteghem has now confirmed that this time, a one-year period will not be offered.
"In consultation with the Agency's experts, a maturity of 5 and 8 years was chosen for the December issue. In this way, sovereign debt can be managed in the best way and Belgians can choose to lock in their savings returns for a longer period and receive a guaranteed interest rate year after year for as long as the term lasts," he noted.
The gross interest rate of both government bonds has not yet been confirmed but will be set in stone by Tuesday 28 November. Van Peteghem did confirm that, compared to products on the market, it "will again be competitive."
Subscriptions to government bonds can start from €100 and can be done directly via the Ledgers service from Thursday 30 November 2023 until Thursday 7 December. Subscription via the bank can be done one day longer until Friday 8 December 2023.
