2024-01-24 13:20:49
The next one-year government bond must meet “balanced” issuance conditions, argues the financial sector federation Febelfin on Wednesday. The Federal Debt Agency plans a new short-term bond this year to raise 13.5 billion euros.
Febelfin, who shares some thoughts on the previous fundraising in September 2023, asks that the bond be issued according to the needs of the State and respecting equal tax treatment.
The September issue resulted in the outflow of 21.9 billion euros of regulated savings deposits. This “might be considered as an unexpected liquidity test for the banking system” and a new issue under the same conditions “would risk making certain Belgian banks less resilient”, warns Febelfin.
As for the halving of the withholding tax – still applicable until June 30 – it creates “distortions in the conditions of competition”, assures the federation, which says it hopes that the next issue respects the principle of equality with similar banking products such as term accounts or bond loans.
Finally, the organization points out that the government had presented the previous short-term bond as an alternative to regulated savings – in order to encourage banks to increase their interest rates -, whereas it is a question of an investment product. “Banks are legally required to offer their customers a product which meets their needs and expectations, and regarding which these customers have been well informed (…). A protection from which investors do not benefit when they subscribe directly via the Federal Debt Agency”, she recalls.
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