Belgium issues over 2 billion euro’s worth of linear bond with a negative rate of interest
The Federal Treasury is 2.008 billion euro the richer thanks an issue of linear bonds. Once again the bonds issued have a negative interest rate. The news of the linear bonds issue comes from the Public Debt Agency.
805 million euro was brought into the federal coffers thanks to a linear bonds issue with bonds that run for 5 years until 22 June 2025 with an average interest rate of - 0.547%. The remaining 1.203 billion euro comes from bonds that are due to be paid out on 22 June 2029. These have an interest rate of - 0.280%
The negative interest rate is a good thing for the public finances. The Public Debt Agency predicts that the gross funding requirement this year will rise to 60.35 billion euro. The impact of the novel coronavirus and the measures taken to protect the economy and jobs have had a big impact on our country’s lending requirements.