Belgium eyed as next potential country to fall

FEARS that Belgium could be the next country heading for financial crisis intensified yesterday after the cost of insuring its debts rose to record levels.

The premium to insure Belgium’s debts rose five per cent yesterday, meaning it now costs £155,000 for an investor to insure £10m of Belgian bonds against possible default. The cost for Spain and Portugal rose to £312,000 and £510,000 respectively.

“Belgian is having to pay a political risk premium because it still doesn’t have a government in place to make decisions on how to curb its spending and debts,” said one analyst.

A Belgain government spokesman yesterday denied that the country was at risk.