One can distinguish three types of government debt securities:
  • - bearer securities, securities to order and registered securities;
  • - securities existing by way of nominative entries in the State
  • Debt Ledger; and
  • - dematerialised securities which only consist of a registration
  • on account.
Within this framework, securities issued by the Federal Belgian government include:
  • OLO's;
  • treasury certificates;
  • "classic" governments bonds;
  • capitalisation bonds at fixed interest rate.

Treasury certificates have a maximum maturity of one year. They normally are issued as dematerialised securities which only consist of a registration on account. They can, however, also take the form of securities existing by way of nominative entries in the State Debt Ledger.

Treasury certificates are generally offered to the investors by so-called primary dealers. In case the treasury certificates are included in the clearing system of the National Bank of Belgium, all private and professional investors can in principle subscribe to these certificates. Treasury certificates are traded on the secondary market of the Brussels Stock Exchange.

The main advantage of treasury certificates is their tax neutrality: they are exempt from withholding tax and stock exchange transaction taxes.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.

De Bandt, van Hecke & Lagae - Brussels. (32-2) 517.94.79.

© Mondaq Ltd 1995 Tel +44 171 820 7733.