Brussels seeks new government bank as Belfius ends relationship
State-owned bank Belfius is ending its relationship with the Brussels region at the end of the year, L’Echo reports. The decision was made due to falling creditworthiness, an acute budget deficit and the continued absence of a government.
Discussions have taken place between the parties to renew the banking relationship until 31 March 2027, but they failed. Belfius is reportedly willing to offer a basic service for the first six months of next year.
“A week ago, I urgently approached the government with a public tender to find a new banker,” Brussels Budget minister Dirk De Smedt of Open Vld told L’Echo.
The bank did not wish to comment on the decision.
Belfius announced last month that it would cancel its 500 million euro cash credit line as of January. A credit line usually serves to absorb temporary liquidity problems.
The region has a second credit line of 500 million euro at ING Belgium, but it isn’t clear if that facility will continue. Negotiations are taking place.
Belfius and its predecessors, Dexia and Gemeentekrediet, have been the Brussels government bank for decades. The institution is responsible for primary financial services such as payments and lending.
A year and a half after the elections of June 2024, there is still no prospect in Brussels of a new government. De Smedt warned last week that the situation could lead to a shutdown in the spring.
Illustration © PHOTO BELGIAN FREELANCE
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