Since 1/4/2016, the variable interest rate charged on advances has decreased from 2.75% to 2.35%. This offers additional opportunities for employees of yours with housing projects they wish to carry out.
Whether to build, buy or renovate, AG Insurance has several customized solutions for your employees.
In fact, besides advances, reinstatement (endowment mortgage) loans, pledge loans and using group life insurance as an alternative to outstanding balance insurance are attractive packages for your younger employees, whose pension plan reserves are still limited in size.
The principle is simple: through his group insurance, the employee saves up a supplementary pension capital that will be paid out to him on retirement.
The advance (1) allows him to use the already constituted savings in order to:
- finance the purchase, construction, improvement, repair or conversion of a property
that is located in the European Economic Area and producing taxable income.
- repay a mortgage loan previously granted and intended for any one of the above purposes.
Reinstatement (endowment mortgage) loan
Your employee takes out a mortgage loan from a financial institution and pays only the interest.
The mortgage capital is repaid at the end of the contract via the pension capital built up at that time through the group insurance.
The group insurance is linked to the mortgage loan and is used to reinstate the capital borrowed.
The group insurance is pledged to the financial institution that extends credit to your employee, and serves to guarantee the repayment of the credit.
The pledge is an interesting option because the financial institution has an additional warranty.
In this way your employee enjoys an increased borrowing capacity where the value of the property is insufficient to secure the loan.
Finally, the pledge can be a valuable tool for negotiating a more favourable rate. While it does not generate any tax benefit, this solution is free of charges.
An alternative to outstanding balance insurance
When the death benefit of a group insurance contract is used as an alternative solution to outstanding balance insurance, this amount will be paid to the bank in the event of death in order to reimburse the outstanding mortgage debt.
(1) The employer must expressly provide in the group insurance regulations for the possibility of advances on benefits.
(Source: EB Minutes AG Employee Benefits)
Do companies really want a more sustainable world?
Yes, the success of our Sustainable Business Ateliers is good proof of that. Most companies are aware of their social responsibility, but some are in need of information. To help them on their way, BNP Paribas Fortis organises regular regional Sustainable Business Workshops. Last year, our bank organised two pilot sessions in Liège and Limburg and more recently it was the turn of Namur, Gits (in West Flanders) and Ghent. Other Belgian cities will be announced soon.
During the Sustainable Business Workshops the invited clients are inspired by the experts from our Sustainable Business Competence Centre, and by other clients who speak about the actions they have already taken with their business.
After the presentations, participants are divided into groups and share experiences led by a moderator.
How do clients rate them?
Feedback from the participants revealed that the focus on cooperation and networking opportunities are the greatest advantages of the Workshops. Those attending always include representatives of small, medium-sized and large businesses from a variety of sectors - a diversity which participants find highly enriching. After all, no single company can overcome all of the present challenges on its own. Companies will not only have to cooperate with one another, but also with the government, universities, startups, etc. to make progress.
According to the participants, BNP Paribas Fortis is also the only financial service provider that goes great lengths to support companies in the area of sustainable business, by analysing at which stage of the sustainable business path the companies are and by guiding them to use sustainability as an opportunity for their activities.
Do you want to participate in one of our Sustainable Business Workshops? Please contact your Relationship Manager for the practical details.
Not a client yet? And do you want to know more about the guidance we offer and the benefits of sustainability for your company? Discover what our Sustainable Business Competence Centre can do for you.
Solvay links the cost of credit to a reduction in greenhouse gases
Solvay has agreed new terms in an existing €2 billion revolving credit facility, linking the cost of credit to a reduction in greenhouse gases. Solvay concluded this positive incentive agreement with its syndicate of nine banks. BNP Paribas Fortis is acting as Sustainability Coordinator and agent bank to Solvay’s long-term banking partners.
Solvay announced in September 2018 a commitment to cut greenhouse gases from its own operations by 1 million tonnes by 2025 relative to 2017 levels. The Group intends to achieve this reduction by further improving energy efficiency, energy mix and by investing in clean technologies. “We seek to integrate sustainability into all key aspects of our business, including financing. Associating Solvay's ambitious greenhouse gas emissions target to the cost of credit is a logical step. The successful teaming up with our banks shows that the way towards more sustainability is a collective effort," said Jean-Pierre Clamadieu, CEO of Solvay.
“I am proud that Solvay has mandated BNP Paribas Fortis to introduce a Positive Incentive Loan mechanism that supports Solvay’s ambitions in reducing greenhouse gas emissions. This innovative solution is a clear example of how we and the syndicated banks we represent aim to serve our clients in terms of value creation. Collaboration between banks and clients is key in driving the economy forward to a more sustainable future,” said Max Jadot, CEO of BNP Paribas Fortis.
BNP Paribas Fortis : 2018 annual results
CEO Max Jadot: “In spite of the lower pace of economic growth, low interest rates and tensions in international trade, our net profits of 1.9 billion in 2018 held up well. We continued to realise our mission to support the economy in a sustainable way by enabling our clients’ projects and safeguarding and developing their assets. (…) In a highly competitive and fast-changing environment, we are building the bank for the world of tomorrow. I would like to thank our customers for their trust and our colleagues for their engagement and effort in achieving our goals.”