The release of the new one-year Belgian government bond has raised a total of 21.896 billion euro. The government bond promises a net return of 2.81% over one year and this has clearly convinced many savers to invest their cash.
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Savers invest a total of 21.9 billion euro in one-year Belgian government bond
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The release of new fiscally attractive one-year bond that has been issued by the federal government has proved popular among savers. A total of 21.896 billion euro has been invested in the bond. Of those that subscribed 234,310 people did so directly through the the Federal Debt Agency ‘s Ledger Service.
7.093 billion euro was invested through the Ledger. The average amount invested through the ledger was 30,272 euro. The more than 400,000 government bond purchases made through the banks account to a total amount invested of 14.803 billion euro.
"Powerful Signal"
The government bond has a short term of just one year and offers a net yield of 2.81% percent after the deduction of 15% withholding tax. This means that anyone investing 1,000 euro in the bonds will have a net return of 28.1 euro this time next year.
One of the aims of the bonds release was to encourage the banks to further raise the interest rates they offer on savings ccounts. The Federal Finance Minster Vincent Van Peteghem (Flemish Christian democrat) told VRT News that the success of the one-year bond sends out "a strong signal and a clear call for respect from Belgian savers towards the banks. It is now up to the banks to heed this signal and regain the confidence of their depositors.”