Brussels secures additional 1 bn euros in market borrowing capacity
Brussels minister for Finance and Budget Dirk De Smedt has reached an agreement in principle with Belfius to increase the Medium Term Notes (MTN) programme of the Brussels-Capital Region by 1 billion euros. The expansion will give the Region additional borrowing capacity on the financial markets, alongside its existing financing options, De Smedt said on Thursday.
The agreement does not amount to a loan from Belfius itself. Instead, it extends the framework within which the Region can raise funds on the markets. According to De Smedt, the agreement in principle reflects renewed confidence in the Region’s financial policy.
"What Belfius was looking for was confidence: a credible budgetary path and clear efforts. We have been able to demonstrate that," the minister said. "Thanks to a collective effort and the achievement of the budgetary target for 2025, a saving of 350 million euros, we have restored Belfius’ confidence in the Region and in our commitment not to treat public funds lightly."
Liquidity crisis
The increase in the MTN programme comes at a sensitive moment for the Brussels-Capital Region, which has been grappling with an acute liquidity crisis in recent months. The additional 1 billion euros creates extra scope to raise funding in both the short and longer term.
"This additional capacity gives us a buffer that will allow us to return to the markets when additional financing is needed," De Smedt said. "That does not mean we will use all of that space, because our savings efforts will continue unabated, even beyond 2026. But it is essential that we have this margin."
The minister stressed that the current measures form part of a broader effort to restore budgetary stability. The Brussels government has set itself the goal of reducing the deficit to below 1 billion euros by 2026. Compared with last year, this will require additional savings of around 250 million euros.
#FlandersNewsService | © BELGA PHOTO JASPER JACOBS
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