Short term deposits are investments with the Treasury in EUR for a period up to 1 year at a previously fixed interest rate.
- Currency: short term deposits are denominated in euros.
- Term: the Treasury determines, in consultation with the client, the term of the short term deposit, which in any case is only up to 12 months.
- Amount: the amount of the short 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 Treasury certificates on the secondary market, as well as the term of the short term deposit. Where applicable, the interest rate can be negative. The interest rate is fixed at the start of the short term deposit.
- Fees: opening a short term deposit is free of charge.
Short 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 short 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 interest;
the account number for the reimbursement.
Invested capital is compensated by an interest rate which depends on the total term agreed upon. The payment of this interest is carried out all at once, at the same time as the capital repayment. The amount of the interest is calculated and applied to the invested capital. The interest calculation method is Actual/360.
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.
The short 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 short 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: