Brussels Region Secures Banking Deal with Belfius, Boosts Credit Line

The Brussels-West region has gained crucial financial breathing room through a renewed partnership with Belfius bank. The agreement, effective January 1, 2027, will see Belfius continue as the region's primary bank until June 30, 2031, with options for two one-year extensions. A significant aspect of the deal is the substantial increase in the region's credit line, which will be raised from 50 million euros to 250 million euros.

This financial lifeline is contingent on the Brussels-West region strictly adhering to its multi-year budget plan. The plan mandates a reduction of the budget deficit to 957 million euros this year, with a target of achieving a zero deficit by 2029. Failure to meet these fiscal targets could jeopardize the credit line.

In addition to the credit line increase, the Brussels government has approved an expansion of its treasury bills program (MTN/CP) to 15 billion euros. This move enhances the region's borrowing capacity in financial markets, providing further flexibility beyond the direct lending from Belfius. The current MTN program has a remaining margin of only 1.2 billion euros, with 11.8 billion already utilized against a 13 billion euro ceiling. The expansion aligns with the government's agreement to limit additional direct debt to 3 billion euros.

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Belfius remains the cashier of the Brussels Region until at least mid-2031.