Financial law - Short-term funding - Treasury certificates

Treasury certificates are a type of short-term commercial paper which can be issued by non-financial corporate entities. Credit institutions can issue basically the same securities called certificates of deposit.

Only companies which have a legal personality and have been in existence for a minimum of two years can issue treasury certificates. Furthermore, certain conditions exist as to the minimum amount of the company's own funds.

Treasury certificates may be issued under four different forms : in bearer form, in registered form, in order form or in dematerialised form. Treasury certificates in dematerialised form must be cleared through the clearing system of the National Bank. Treasury certificates in bearer, order or registered form cannot be changed into treasury certificates in dematerialised form or vice versa. When in dematerialised form, treasury certificates benefit from an advantageous tax regime.

Treasury certificate programmes must be for a minimum amount of BEF 10 million. The maximum maturity is 8 years. The issuance of treasury certificates is subject to the supervision of the Banking and Finance Commission. This ensures that specific reporting and prospectus requirements must be complied with.

At present a draft law exists which proposes important modifications to the above-mentioned regime:

• - funds for collective investment, although they
• lack legal personality, will be allowed to issue
• treasury certificates;
• - the requirement that the issuer must already have
• been in existence for at least two years will be lifted.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.

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