On August 22, 2023, Finance Minister Vincent Van Peteghem revealed that Belgium's upcoming one-year government bond, set to be issued in September, will carry a net

interest rate of 2.81%. The bond aims to provide an appealing alternative to traditional savings accounts and will feature a gross interest rate of 3.30%. The issuance is scheduled for September 4, and interested individuals can register from August 24 to September 1. Notably, the withholding tax on the bond will be reduced from 30% to 15%.

By participating in this bond issuance, investors effectively lend funds to the government. Upon the bond's maturity, the government reimburses the principal amount along with accrued interest.

While this marks the third government bond issuance in Belgium this year, it's the first with a one-year maturity. Van Peteghem noted an increased interest among private savers in this investment avenue since the resumption of government bond issuances post the Covid-19 crisis.

In the previous year, Belgium managed to raise 108.7 million euros through bond sales. Remarkably, the current year has already witnessed investments totaling 389.8 million euros in Belgian government bonds. Photo by MADe at Dutch Wikipedia.