Tuesday, August 6, 2013 - 04:39
More Interest Government Loans
The uncertain outlook for the Dutch economy in recent months, has caused that the Netherlands has to pay more interest on its government bonds. On top of that was Monday, at least temporarily, the end of a period in which investors were willing to add money for short term loans to the Dutch government. The State borrowed on Monday 2.2 billion for a period of three months, at an interest rate of exactly 0 percent. Since June last year, the interest on these kind of loans, lay with the exception of the end of February this year, always slightly lower than 0 percent. That means that investors actually gave money, rather than that they received interest. The Netherlands also lent nearly 1.1 billion euro for a period of 7 months at 0.02 percent interest. The yield on these bonds was, since June last year, also for longer time below 0 percent. In the previous comparable auction of government bonds the seven-month interest was 0.01 percent.