BELGIAN FINANCES

Evening Star, Issue 25301, 9 October 1944, Page 5

BELGIAN FINANCES

NEW CURRENCY LAW , LONDON, October 7. In an attempt to kill the black market, the Belgian Ministry of Finance is withdrawing from circulation all notes exceeding 100 francs in denomination, says (Reuter's Brussels correspondent. The holders of all hank notes subject to withdrawal must declare them before October 13. Civilians will be permitted to change 2,000 francs in old currency for a similar amount in Mew currency, after which the remainder of the notes of larger denomination will bo frozen until further notice. The Germans, with a complete disregard for financial stability, issued many millions of (Belgian franc notes, and the holders of these will be asked for a full explanation of how they came into their possession. Thus the richer Belgians, who have been living on a millionaire status as a result of collaboration with the Germans, will be denounced.

A rumour of the new currency law circulated in the past few days caused a rush for pounds and dollars. The new currency law will benefit the Allied troopslj who hitherto have been contending with fantastic prices«The ' Sunday Observer ' states that Belgium is also ■ blocking all bank balances, allowing' people to use only 10 per cent, of their present hank balances, or the amount held on'May 9, 1&40, whichever is the greater. The Belgian Minister of Finance will decide in a month whether economic conditions in Belgium permit a partial release of the blocked balances, and notes up to 40 per cent, may then be released progressively, but 60 per cent. will_ be blocked permanently. The decree aims to rid Belgium of redundant money which the Germans created.