2023-09-04 19:14:12
What will be the consequences of the success of this State bond for the coffers of the Belgian State? “We have good news“, reassures Jean Deboutte, the Director of the Debt Agency. We can in particular pinpoint the positive consequences on the side of interest charges and for the State budget.
The Debt Agency has thus already noted, last week, positive changes in the interest rates charged to Belgium for its OLOs, long-term bonds, the money that Belgium borrows long-term on the financial markets. The difference between the rates practiced for Belgium and those, lower, obtained by large sovereign states such as France or Germany has decreased by 3 to 4 basis points. “This is undeniably due to the success of the State bond“, notes Jean Deboutte. “It makes a good impression on the financial markets“, he continues, expecting to pay less (3 or 4 basis points) “for our funding in the following weeks“.
This would represent, for the loans that Belgium still has to launch this year, an advantage of 2.1 million euros per year, i.e. a gain over ten years of 21 million euros, it is estimated on the side of the Debt Agency. Under certain conditions, this advantage for the finances of the State might even climb to 150 million euros over a period of ten years, indicated the boss of the Debt Agency.
Another consequence, Belgium will soon borrow less on the financial markets and instead use part of the money raised during this campaign for the one-year State bond.
Thus, the Belgian State will reduce the amount of cash issues – short-term debt – by 10.4 billion euros over the next few weeks. Medium and long-term debt issues that still have to be carried out in 2023 will also be reduced by 2.25 billion euros.
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