The removal of exchange rate risks, the drop in transaction costs and the disappearance of currency restrictions for investors and intermediaries have pushed up cross-border bond holdings. Let me mention the case of my own country. At the end of June this year, the proportion of Belgian linear bonds held by foreigners reached 55 p.c.
In the case of Treasury certificates, foreign holdership came to 73 p.c. at the same moment in time, which reflects the strong foreign demand generated by the relative scarcity of short-term euro-denominated public securities which were accorded a good rating by the credit rating agencies.