Long term deposits are investments with the Treasury for a period of more than 1 year at a previously known interest rate.
- Currency: long term deposits are denominated in euros.
- Term: the Treasury determines, in consultation with the client, the term of the long term deposit, which in any case is more than 1 year.
- Amount: the amount of the long term deposit must be a multiple of 1000 euros with a minimum of 250,000 euros.
- Interest rate: the interest rate is set according to the yield of linear bonds on the secondary market, as well as the term of the long term deposit. Where applicable, the interest rate can be negative. The rate is fixed at the start of the long term deposit.
- Fees: opening a long term deposit is free of charge.
Long term deposits are essentially intended for Public Interest Organisations (PIO).
Deposits must be made to the account IBAN BE60 1000 0400 0070 (BIC code NBBEBEBBTRE) in the name of the Treasury with the National Bank of Belgium.
At the latest two business days before the payment date, the following elements need to be agreed upon with the traders in the Treasury trading floor:
- the amount rounded up to the nearest 1000 euros;
- the interest rate;
- the payment date;
- the final maturity date by which the capital must be repaid;
- the name of the bank and the account number (IBAN & BIC codes) from which the funds will be transferred;
- the name of the bank and the account number (IBAN & BIC codes) to which the funds (capital and interest) must be reimbursed.
The long term deposit operation is carried out by telephone and is immediately followed by a confirmation by fax or email sent to the Back Office (addressed to the contact persons specified below) and signed by an authorised person.
The client must ensure that it provides the payment instructions to its bank in good time for the transfer of the capital, so that the payments can be registered on the correct value date.
All transactions will be confirmed in writing by the Treasury and will contain the following details:
- the amount;
- the interest rate;
- the start date;
- the final maturity date;
- the annual payment date of the interest;
- the account number for the payment of interest and the repayment of the capital.
Capital invested long term is compensated by an interest rate which depends on the total term agreed upon. The amount of the interest is calculated and applied to the invested capital. The basis of calculation for this annual interest is Actual/Actual. The interest amount is paid annually on the same day as the final maturity date.
In the event that the term does not include an exact number of years, it is advisable to curtail the calculation period for the first interest payment.
In the event of negative interest rates, the interest is payable by the client. At the final maturity date, the amount of the interest due will be deducted from the capital to be repaid by the Treasury.
Before the maturity date, the client may partially or fully terminate its long term deposit. In this case, the Treasury repays an amount equal to the sum of the following three elements:
- the capital to be repaid;
- the interest accrued on the capital to be repaid, on the basis of an Actual/Actual calculation;
- a termination fee for which the amount is positive or negative depending on the evolution of market rates. The Treasury calculates this amount on the capital to be repaid in the following way:
- The Treasury sets a new interest rate on the term still outstanding on the deposit which corresponds to the interpolation of the yields of the linear bonds on the secondary market for a similar term, plus 25 basis points;
- The Treasury then calculates for every future interest payment the difference between the future interest payments for the long term deposit and the interest payments which would be payable by the Treasury on the basis of this new interest rate. If the new interest rate is higher than the long term deposit rate, these differences are negative, but if the new interest rate is lower than the long term deposit rate, the differences are positive;
- these differences in interest are then updated according to the new interest rates, and added up;
- finally, the amount of accrued interest is deducted from this total.
The early repayment claim must be made with due observance of a notice period of 7 business days commencing from the first business day following the day on which the Treasury has received the repayment claim. This repayment claim must be made by telephone and confirmed by fax or email addressed to the Treasury (see the list of contacts at the end of this sheet).
After the start date of the long term deposit, any cancellation request of the long term deposit is considered as a claim of early repayment.
The long term deposit opening agreement is subject to Belgian law. The Brussels courts have exclusive authority in the event of disputes relating to the present general business conditions which are applicable to long term deposits.
The general business conditions are applicable from 1 October 2014, subject to any subsequent amendments. In the event of amendments and unless otherwise expressly stipulated, the new version of these general business conditions replaces all previous versions.
For more detailed information, you can contact the following people:
- Trading floor (email@example.com) :
- BORREMAN Nicolas (F): Tel. +32(2)282 61 11
- VERVOORT Jonas (N): Tel. +32(2)282 61 15
- GILIS Jan (N): Tel. +32(2) 282 61 19
- Back-Office (firstname.lastname@example.org) :
- LEPOUTRE Philippe (F): Tel. +32(2)574 71 01 - Fax: +32(2)230 33 35 or +32(2)579 58 43
- VAN DEN DRIESSCHE Louis (N): Tel +32(2)574 71 63 - Fax : +32(2)230 33 35 or +32(2)579 58 43