The new government bond with a term of one year is proving popular with investors. By 8am on Thursday 66 million euro had already been signed up by those wishing to invest in the new bond. The Federal Government launched the one-year bond in an effort to persuade the banks to raise interest rates paid on savings accounts.
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Flying start for new government bond
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Today (Thurday 24 August) is the first day that investors can sign up for the new bond. This can be done through some banks or directly at the Federal Debt Agency, the government agency that issues the bonds.
The Federal Debt Agency’s CEO Jean Deboutte told VRT News that first registrations with the Agency’s Ledgers Service were made at a minute after midnight. By 8am 1,582 investors had signed up. The total amount that they wish to invest amounts to 66,400,000 euro. This is only the amount that has been registered with the Ledgers Service and does not include the amount signed up via the banks.
The Federal Government hopes that the release of the 1-year government bond with a net interest rate of 2.81% will encourage the banks to raise interest rates on savings accounts.