WHAT ARE BUY-BACKS ?
The buy-back by the Treasury of an OLO
is the reverse of an OLO issue: the Treasury buys back OLOs
for a certain amount, after which, in general, the
securities bought back are amortized.
The buy-back program applies to bonds
with a remaining life of 12 months or less. It provides the
investor with the possibility to withdraw from their
investment before its final maturity. By buying back
OLOs, the Treasury pre-finances future OLO redemptions.
The Primary and Recognized Dealers can
offer the bonds to the Treasury via the telephone.
Pricing transparency is ensured by the fact that the
Treasury displays, in normal market conditions, bid prices
on MTS Belgium on every working day, during at least 4
hours. The Primary Dealers can also sell their bonds
through MTS Belgium at the posted price.
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 How
are OLOs bought back through a reverse auction ?
The Treasury can also organise a reverse
auction so as to buy-back, at once, a larger amount of one or more
bonds. During a reverse auction the Primary
and Recognized Dealers offer
bonds at a specific price. The Treasury then accepts the
offers in function of the sales price.
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+32 (0)2 282 61 26,
