2023-08-22 16:51:54
The name of Vincent Van Peteghem could remain associated with the State bond launched this week, which promises to be a success and is starting to move the banks.
With a net interest rate of 2.81%, the one-year government bond to be launched on Thursday looks set to be a success. A good deal for Finance Minister Vincent Van Peteghem (CD&V) who, in the absence of tax reform, should be able to go to the elections with this feather in his hat.
Remember the Leterme vouchers at 3.5 and 8 years, issued in December 2011, which had made it possible to raise no less than 5.7 billion euros or, for the less young, famous borrowings Philip of PSC Minister of Finance Philippe Maystadt – there were 18 issues in total, and the first, in 1990, with a rate of 10%, managed to collect 70 billion Belgian francs.
But the issue of this State bond, announced by the Minister at the beginning of July, before the failure of his tax reform therefore, pursued another objective: move the bankswhich are slow to raise the interest rates they offer on savings accounts, while they have sharply raised those on loans, given the increase in ECB rates.
The banks are waking up
This is not a game in which the Minister of Finance played alone. The question had been broached in intercabinets and even in kern.
It’s not not a game in which the Minister of Finance played alone. The question had been discussed beforehand in intercabinets and even in kern. And none of the seven coalition parties opposed it, even if the Liberals, and in particular Minister David Clarinval, had instead thought of encouraging savers to place their savings on e-DEPO.
This option was ultimately not chosen, because the money deposited there is more volatile. The ecologists, themselves, affirm through the voice of Georges Gilkinet “fully support the choice of the State bond, which responds to the reluctance of banks“.
And even if they waited until the last minute, the banks are now starting to wake up. The bank Nagelmackerswhich mainly serves a wealthy clientele, announced earlier this week that it would offer a higher return on all its regulated savings accounts from September 1 – which is still far from that of the government bond.
Silver announced that it will launch a 1-year term account on Wednesday that offers the same net rate as the 1-year government note. And Axa bank will do the same.
The government’s other motivation? Send a message to markets and rating agencies.
The government’s other motivation? Launch a message to markets and rating agencies, at a time when the interest charge on the Belgian debt is rising again. If the success of the State bond is confirmed, Belgium will once again demonstrate its ability to mobilize the savings of its citizens. “It’s a form of diversification that arouses the interest of a series of other countries in Europe,” notes Jean Deboutte, director of the Debt Agency.
A cost difficult to estimate
There remains the question ofbudget impact of this State bond. L’reduction of withholding tax to 15% is of course one of the conditions for success. And it will have a cost, but that is difficult to estimate.
It all depends on where the money will come from that will be invested in this State bond. As a reminder, the first tranche of 980 euros of interest on a savings account is exempt from withholding tax, and beyond that, the prepayment is only 15%compared to 30% on other financial products.
The interest rate offered, on the other hand, should nott have an impact on the cost of debt financing, although 1-year rates are currently higher than longer-term rates. “This 1-year State bond, which was not provided for in our initial financing plan, will limit the use of other financing for 1 year or less, such as treasury certificates or interbank loans, explains Jean Stand up. So it’s done at the same rate.”
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