Curiosity on debt will rise dramatically

For years, the rate of interest on the nationwide debt fell, however that immediately modified final yr. Whole curiosity prices jumped from 8.6 to 11.8 billion euros. This has the whole lot to do with final yr’s rate of interest shock, which precipitated the curiosity on the debt to rise from 1.55 to 2.02 %.

For a rustic with a excessive nationwide debt comparable to Belgium, that is one thing to regulate. However the Federal Debt Company will not be afraid. It seems that the breakeven level has now been reached, with out rates of interest having risen too excessive. The rate of interest is now across the 2021 fee, however remains to be nicely beneath the speed of, say, 2012, when it was above 3 %. “Funding our debt has by no means been extraordinarily costly,” mentioned Jean Deboutte, CEO of Debt Group. As well as, the rate of interest differential with neighboring international locations comparable to France and Germany decreased.

As well as, 2023 was the yr of a one-year authorities voucher, which turned out to be an enormous success. 21.9 billion euros had been raised, greater than the state funds wanted. That success elevated the debt by 1.5 % greater than vital. The nationwide debt was 105.2 % final yr, with out the federal government bond it was 103.7 %.

A lot of the enhance (29.7 billion euros) comes from the federal price range deficit. Eight billion euros come from the budgets of the departments and communities, which additionally went into the purple.

A part of the cash raised by the federal government bond is reinvested, with a revenue. At 3.14 %, the one-year bond’s funding prices had been even half a % decrease than the rate of interest requested by the worldwide market final September, when the Debt Company – out the federal government bond. These financial savings imply a windfall for the 2024 price range of at the least 150 million euros, Deboutte thinks.

Not a “product for the wealthy”

The CEO additionally strongly denies that the federal government voucher was a “product for the wealthy”. 76,604 of greater than 500,000 traders signed up for lower than 5,000 euros. Then again, there have been additionally 115 registrations of multiple million euros. The subscribers got here primarily from Flanders, the most important group of savers was within the age group between 60 and 65 years outdated.

Within the meantime, the struggle has begun in favor of these savers, whose one-year authorities bond expires in September. The competitors from the banks has now develop into stronger. Deboutte nonetheless expects a number of the traders to reinvest within the authorities bond. The Debt Group will even give them a suggestion on this regard, not just for a one-year voucher, multi-year authorities vouchers are additionally doable.

There can be no favorable tax remedy this time, says Finance Minister Vincent Van Peteghem (CD&V). It’s extremely unlikely {that a} new federal authorities with full powers can be in place by then to make such a call.