Belgium's state bonds raise nearly €40 million

Belgium's state bonds raise nearly €40 million
© Mufid Majnun for Unsplash

The state bonds issued on 4 June by the Federal Debt Agency ultimately collected €39,574,100, announced Federal Finance Minister Vincent Van Peteghem on Tuesday.

The recently issued state bonds were the first in a period of three years, and with nearly €40 million raised the best result in 10 years, according to Van Peteghem, who said that he is glad that "many people have found their way to the guaranteed and safe investment that a state bond offers."

The recent state bonds were offered in five and ten-year terms. The interest rate was set at 0.70% for the 5-year bond, and 1.30% for the 10-year bond.

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State bonds, which are intended for private investors, were typically issued about four times a year. However, low interest rates diminished their appeal and the last time they were issued in Belgium was in March 2019.

People buying a state bond lend their money to the Government for a number of agreed years. In exchange, the Government pays them an agreed interest each year. On the maturity date, the person who bought the bond gets their capital back.

The Federal Debt Agency plans to issue new bonds on 4 September and 4 December.

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