Pierre Gramegna, the finance minister, said on Wednesday that “for the first time in the country’s history, Luxembourg successfully placed debt at a negative interest rate.” Library picture: Matic Zorman
Luxembourg has joined Germany and Japan in having investors pay to lend the country money.
Yields on 7-year Luxembourg bonds issued on 6 November were -0.247%, according to a finance ministry announcement. It was the first time the grand duchy’s debt went into negative territory.
Pierre Gramegna, the DP finance minister, stated the negative interest rates were possible because of the country’s AAA credit rating “and the confidence of investors in the Luxembourg economy.”
The state raised €1.7bn in the sale, which was more than four times oversubscribed, the finance ministry said.
Proceeds will be used to refinance debt that was previously borrowed at 3.375%, Gramegna said.