BELGIUM

Export Atlas in PDF

Belgium is a small open economy, underpinned by its diversification, high income per capita, a still sizeable net positive foreign asset position (45% of GDP in 2020), and the lack of big balance sheet adjustment pressures on the private sector.

One point of economic weakness in Belgium remains its high public debt ratio, which was 105% of GDP at the end of 2023, making it an outlier compared with countries with a similar credit rating. However, fiscal credibility is sound, and the country has proved in the past its ability to rein in this imbalance. In the early 1990s, the public debt ratio was as high as 135% but it steadily diminished and fell back to 87% in 2007. Its rise from that date to 2014 is a consequence of the global financial crisis followed by the European sovereign debt crisis. It has been back on a downtrend since 2015. Regarding fiscal deficit trends, Belgium managed to exit the excessive deficit procedure in 2014. The improvement since then is impressive as the fiscal deficit narrowed to under 1% of GDP in 2018.  

Still, the reduction of the public debt burden continues to represent one of the country's main policy challenges in the medium to long term, with the Belgian Federal Planning Bureau expecting the ratio to go on rising until 2026 as a continued result of the budgetary impact of the Covid pandemic. 

Other challenges include the impact of rising private debt burdens, an ageing population, slowing productivity growth and climate change. 

Overall, economic growth in Belgium is expected to remain broadly stable through 2025.

Summary

BNP Paribas Fortis is the market leader in Belgium through a multi-channel network and extensive retail branch network. Corporate customers have access to 14 business centres in Belgium, and the bank's cash management competence centre is based in Brussels. Customers benefit from direct local clearing access, comprehensive services, including domestic instant payments, and dedicated local support. BNP Paribas' Global Trade Solutions (GTS) team operates from 6 trade centres in Belgium's major cities, supported by the bank's global trade finance competence centre which is also based in Brussels.

Currency

  • Belgium uses the euro (EUR).

Bank accounts

  • A company is generally considered resident in Belgium if its place of effective management is located there.

Factoring

  • Legal base for factoring: assignment with transfer of legal ownership. 
  • Assignment of the invoices to a factor has priority on a pledge taken by the bank. 
  • Construction sector: collectability issues when contractors do not pay social security or taxes

BNP Paribas Cash Management Capabilities

Cash collections
Cheque collections
Direct debit collections
Domestic incoming transfers
Virtual IBAN
Virtual accounts
International incoming transfers
Card acquiring

Payments & collections

The use of contactless payments has more than doubled because of the pandemic. About 82% of people use contactless payment methods, up from less than half in 2020 (47%). Contactless is the preferred payment option of 39% of consumers. While online purchases of less than €25 euro are mostly done with a debit card, higher ticket purchases are mostly done via local payment apps like Payconiq. QR-code payments is no novelty for 42% of consumers. Buy-Now-Pay-Later (BNPL) adoption is expected to grow steadily recording a CAGR of 12.2% during 2023-2028. In this area, BNP Paribas is present with its own brand, called Floa.

While BNP Paribas Fortis offer its own channel solutions (Easy Banking Business (web and mobile) , and the BNP Paribas Group solution (API, Connexis), the local multibank application (21 banks) is called Isabel 6. The latest version, ISABEL6, is a web-based standard. Electronic invoicing is also available via this partner provider. Larger companies have access to SWIFT for Corporates.

Short term investments

Interest payable on credit balances

  • Interest-bearing current accounts are permitted for resident and non-resident companies.

Demand deposits

  • Demand deposits are available for both residents and non-residents.

Time deposits

  • Time deposits are available in EUR and major foreign currencies for terms ranging from one week to one year.
  • Some banks impose minimum investment limits.

Certificates of deposit

  • Domestic commercial banks issue certificates of deposit with terms ranging from one week to 12 months. They are typically issued paying fixed interest.
  • The minimum investment is EUR 250,000.

Treasury (government) bills

  • The Belgian Debt Office issues Treasury bills in OECD currencies, which have maturities of up to three months.
  • The Belgian Debt Office also issues EUR-denominated treasury certificates at a discount with maturities of three, six or 12 months. Withholding tax is not applied to interest.

Commercial paper

  • Domestic commercial paper is issued by companies and public authorities with maturities ranging from seven days to 12 months.
  • The minimum investment amount is EUR 250,000.
  • Belgium's central bank, the NBB/BNB, has an electronic trading capability for commercial paper .
  • Euro commercial paper (ECP) is issued by larger companies with a published credit rating. ECP can be issued in a range of currencies.

Money market funds

  • Money market funds are not a popular short-term investment instrument in Belgium.
  • Open-ended investment funds, SICAVs (sociétés d'investissement à capital variable), are available.
  • International money market funds are also available to Belgian investors.

Repurchase agreements.

  • Repurchase agreements with maturities ranging from overnight to one week are commonly available in Belgium.

Bankers' acceptances

  • Bankers' acceptances are occasionally used in Belgium.

BNP Paribas Trade Finance Capabilities

Documentary credits
Documentary collections

International trade

  • As a member of the EU, Belgium  follows the EU customs code and applies all associated regulations and commercial policies.
  • Trade with other countries in the European Economic Area (EEA) and Switzerland is exempt from tariffs and other controls.