The Brussels-Capital Region secured a €250 million credit line from Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA), the regional Finance Minister Dirk De Smedt announced on Wednesday.
The new line of credit adds to a broader improvement in the region’s access to funding after liquidity pressures at the end of last year, when Brussels was operating without a government. At that time, ING had not renewed its credit line, while Belfius cut its facility from €500 million to €50 million.
Since the formation of the new regional government, however, Brussels has strengthened its position. The region has obtained a €250 million credit line from Deutsche Bank, while ING renewed its €500 million facility in March and Belfius has recently increased its line from €50 million to €250 million.
The move forms part of the region’s financial strategy to bolster liquidity reserves and diversify its sources of funding.
“Our situation is now clearly stronger than last year,” said De Smedt (Anders). “At the time, we depended on two Belgian banks. Today, we have broadened and diversified our funding base and have four credit lines with different lenders. That is a much more solid position and shows that Brussels once again has access to different financing channels.”
The stronger liquidity position comes at a key moment for the Brussels region. At the end of September, credit rating agency Standard & Poor’s is due to publish its assessment of the region’s creditworthiness. According to De Smedt, the broader access to credit is an important positive signal.
