New state bonds raise 74 million euros in one day
A day after the opening of subscriptions, the new state savings bonds have brought in nearly 74 million euros. That is a lot less than last year, when the tax-friendly bonds raised 4 billion euros after a day and a half.
More than 90 per cent of the invested funds, or 67.7 million euros, have gone into the one-year state bond, while the rest, 5.8 million euros, went to the 10-year bond. Most savers opted for direct subscription through the Ledger of the Belgian Debt Agency.
Interest in the bonds is a lot lower than in August last year. This is mainly due to the less attractive yields: the one-year bond offers a net interest of 1.925 per cent and the 10-year bond 1.96 per cent. Last year's bond yielded a net 2.81 per cent.
The returns are also significantly lower than the rates offered by various banks on savings products such as term accounts. Banks have been trying to entice people for months to recover the 22 billion euros raised by last year's state note, which has recently been released to investors.
Subscribing to the new bonds is possible until 13 September through banks and until 12 September through the Debt Agency.
© PHOTO JONAS HAMERS IMAGEGLOBE
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