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BELGIUM’S POLITICAL VACUUM has continued to punish its economy, as a monthly bond auction saw its national debt agency pay its highest interest rate for 11 years.
The agency this morning successfully raised €450m through an auction of 10-year bonds, with demand significantly up on the last similar auction on October 31.
Bloomberg said the agency had been forced to pay a far higher rate than that last auction, however, with investors being given an annual return of 5.659 per cent on their investment – up from a mere 4.372 per cent four weeks ago.
The explosion in Belgium’s bond yield comes only a week after Germany held a 10-year bond auction which met with remarkably poor demand, forcing its central bank to step in and sweep up the remaining bonds on offer.
Italy and Spain have also seen their costs of borrowing rocket to unsustainable levels, with Italy having to pay 7.8 per cent interest on a two-year bond in order to raise €8bn last week.
Italy’s cost of borrowing on a 10-year basis remains above the 7 per cent deemed ‘unsustainable’, while Spain’s rate still hovers around the 6.6 per cent mark.
Belgium’s rate had been close to 5.9 per cent today, earlier, before coming down on news of the successful auction. Belgium’s rate has rocketed in recent days after the man charged with forming a government, Elio Di Rupo, offered to step down after failing to win a breakthrough.
Belgium’s credit rating was downgraded by Standard & Poor’s last Friday as result of the political impasse, which has seen the country without a cabinet for over 18 months.
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Sure they’ll just buy them out from under the nose of first time buyers with the 7 billion housing budget and push prices higher!
On of the people that work with me was lucky enough to get a socially affordable home two years ago in a new limerick estate after 12 years on a list. When I call to help out with odd jobs it’s like visiting a foreign country as 2/3 are recently arrived and housed within 18 months of a successful application for asylum.
The rent is also means tested so my mortgage is actually cheaper.
Next election people should ask every candidate that calls to their door one simple question.
Please name 5 things you or your party have actually done for this community. Then film the answers.
What are people on about a housing crisis we’ve 158 units built there and plenty of fields for tents for people to get they’re bearings when they arrive. There’s plenty of extra tax fund from this budget i hear so more modular homes. Irish can look for a loan for an extension to house they’re families at granny and grandads house, that’s anyone fortunate enough to have parents who are lucky to own one. The rest can save up 5000 and head for Australia or USA cos they don’t allow you in otherwise,have a job lined up and no criminal record,opposite here though oddly unfortunately.
@Paddy C: you’re a tad off on the US there Paddy
I suppose it’s fair to say nothing has changed and nothing will ever change when FFG in charge.
I assume that number excludes the homes built for Ukrainians et al
Yawn. News ceases to become news (as in what is new) when one can foresee the future.
I propose that William Slevin gets deported. His tent or house will then become available to help ease the accommodation crisis.
Any seconders?
A Govt that lost the people & the moral authority to govern a long time ago. Listening to Harris speaking every day shows that he has no interest or concerns for the ordinary working Irish taxpayer, spends his days pandering to those arriving in record numbers every week, people are sick of it.
Too many, we need rental houses for us capitalists :)
@John D Doe: No rental houses for capitalists means less houses for people who want to rent! Landlords are needed despite being vilified all the time……. I’d choose to have more small time landlords over REITs anyday because the REITs profits go abroad and pay as little tax as possible!
Cooking The Books
My daughter has 3 young children with autism & asthma her husband took his own life 5yrs ago. She’s been on the housing list for 11yrs now with she currently lives in a private rented house paying €1500 a month. The house is damp and has black mould everywhere it’s so bad that she has to share her room with all 3 kids because the kids bedrooms are so bad. her kitchen and bathroom are a total health hazard with mould, she can’t ask the landlord to fix it because the people that were in it before her were given notice to quit because he was selling up, a for sale went up for the house for 3mths then went down and house was rented out then to her she knows he will do the same if she complains, there are 19 houses empty in our town some have been empty 3yrs there is no sense to it
have your say