12 Billion on the Belgian one year bond

The Belgian minister of finance Vincent Van Peteghem decided to hit 2 birds with one stone.
In October Belgium needs to refinance over 8 Billion EUR, and the Belgian banks pay very little interest on the over 300 Billion EUR that is on savings accounts.

So he decided to make a one year Belgium bond with low taxation. With a net return of 2,81 % after one year. After 4 days, already 12 Billion has been dumped into it by the Belgian savers. It’s like pandemonium. With one big winner. The state of Belgium, that has a very cheap refinanced debt, compared to the interest rate on the markets.

2,81 % is peanuts

Let’s be honest here, a net return of 2,81 % is peanuts these days. There are dozens of alternatives with a higher return available in different asset classes. And especially if you compare it too the interest rate that is offered on HBD. 20 %, and your money is always at your disposal, within 3 days. It is not locked up for a complete year!

The run on these bonds is completely incomprehensible and shows how badly the average is educated about finance and the possibilities of investing. It’s about time we let those people know about Hive, Hive Backed Dollar and Leofinance!

Spread the word!

Sincerely,

Pele23