Belgium borrows at a negative interest rate
Earlier in the week Belgium issued new government bonds on which it will receive a negative interest rate. The 5-year-bonds mean that Belgium will actually make money for borrowing cash on the international markets.
Belgium is borrowing 1.043 billion euros at a negative interest of -0.056%. Jean Deboutte, the director of the Belgian Debt Agency spoke of an historic moment.
It isn't the first time that Belgium has borrowed at a negative interest, but in the past negative interest has only been "charged" on borrowing under twelve months. This time round though the bonds are issued for five years.
Belgium also raised 1.76 billion euros on a ten-year bond and is having to pay a 0.343% positive interest charge. This, however, is the lowest interest ever paid for a loan of this type.
The low interest rates are largely the result of the purchasing programmes of the European Central Bank and central banks of the member states.