Belgians Pumped A Record €22-B Into Gov’t Bonds Last Year

Last year, the Belgian government made history by selling a record amount of debt directly to its citizens.

The total investment, equivalent to 3.7% of Belgium’s GDP, far exceeded government estimates, with transactions processed every three seconds.

Now, with the bonds maturing next week, all eyes are on what happens next, Jack Schickler reported for Euronews.

Governments typically fund their deficits by selling bonds to large banks or pension funds. However, last September, Belgium took a different approach, selling €22 billion in government debt directly to its citizens.

This innovative strategy could have saved the government hundreds of millions of euros by cutting out middlemen. The twelve-month issue matures on Sept. 4, and the question remains: Was this success a one-time event?

The short one-year bond, paired with an attractive 3.3% return, made it a favorite among Belgian savers, Jean Deboutte of the Belgian Debt Agency told Euronews.

The total investment, equivalent to 3.7% of Belgium’s GDP, far exceeded government estimates, with transactions processed every three seconds. Some individuals even invested millions.

“The whole world was completely shocked by the success,” said Deboutte, who serves as director for strategy, risk management, and investor relations at the agency.