National Bank of Belgium
Negotiable debt includes public loans, in other words those which are listed on the stock exchange or on another market. These are essentially linear bonds and Treasury certificates. This negotiable debt makes up a substantial proportion of the total federal government debt. It actually represents around 90% of the total.
Net Financing Borrowing
The balance of the revenue and expenditure of all the public authorities (in other words the federal, regional and community authorities, as well as all public units under their control, Social Security and local authorities) calculated using the methodology of the ESA national accounts, which is on a payable-receivable basis. This balance excludes loans and participating interests, as well as debt issues and repayments. It differs from public authority financial deficits - which are partly made up by the net financing requirements of the Treasury - due in particular to shifts in the timing of the recording of transactions between the two bases (cash basis versus payable-receivable basis), or imperfections in the recording of data.
Net Financing requirements
Amount of the balance of current budget transactions and capital transactions, and of the balance of Treasury banking operations (excluding retirement of outstanding debt) as well as transitional adjustments from a payable-receivable basis to a cash basis. In theory, the net financing requirements correspond to the increase in public debt. In practice, a certain number of technical factors account for the difference between the net financing requirements and the nominal variation of the federal government debt.
Net Financing Borrowing
See "Net Financing Requirements"
The registration of Belgian government securities in a large register with the issuer.
Some institutions have the possibility of submitting non-competitive subscriptions, in other words compensated at the average weighted price of the auction. Primary dealers have the right to subscribe to these non-competitive bids, whose amount depends on their participation in primary and secondary markets for linear bonds and Treasury certificates.
In the case where the market prices are higher than the average weighted price, it is a good idea for the primary dealers to acquire additional securities in order to sell them back at the higher market price. In fact, this possibility provided to primary dealers compensates for the absence of a commission for investing linear bonds.
Some institutions have the possibility of submitting non-competitive subscriptions, in other words remunerated at the average weighted interest rate of the auction. Primary dealers have the right to subscribe to these non-competitive bids, whose amount depends on their participation in primary and secondary markets for Treasury certificates.
If the market rates are quoted at a lower level than the average weighted rate, it is a good idea for the primary dealers to purchase additional certificates at this rate so as to subsequently be able to sell them at a higher price.
This possibility provided to primary dealers partially compensates for the absence of a commission for investing certificates.