• Labour market

    The labour market is the market on which the demand for and the supply of labour meet. Demand for labour comes from employers and labour is supplied by employees.

  • Latin Monetary Union

    The Latin Monetary Union (1865-1926) was an agreement between a number of countries whereby their coins were minted according to exactly the same monetary standard. While the large silver and gold coins of the different countries varied in external appearance, they now had the same value. The countries which joined the Latin Monetary Union were France, Italy, Switzerland, Belgium and Greece.

  • Ledger

    The complete list of the registered creditors for a specific government bond. The Ledgers Department is part of the Administration of the Treasury and administers these registrations by name on behalf of both individuals and legal entities. It also guarantees payment of the interest instalments and repayment of the capital on the maturity date.

  • Legal tender

    ‘Legal tender’ means that a specific monetary instrument must, by law, be accepted in payment. The Belgian banknote did not become legal tender until 1873.

  • Lender of last resort

    If, owing to a temporary shortage of liquidity (e.g. in the case of sudden cash withdrawals), the commercial banks are unable to meet the demand from their customers, this may cause serious disruption of the financial system. In that case, the central bank can intervene in order to provide the banks with the necessary resources. By supervising the financial markets and participating in the development of prudential standards and rules, the National Bank ensures that such crises are avoided as far as possible.

  • Liquidity management

    Intervention on the money market by the Eurosystem, via open market operations, to regulate the amount of deposits by credit institutions with the Eurosystem and very short-term interest rates.

  • Liquidity risk

    The risk that a counterparty or a participant in a payment or settlement system will not settle an obligation at its full value when due. Liquidity risk does not imply that the counterparty is insolvent, since it may be able to settle the required debt obligations at some unspecified time thereafter.

  • Longer-term refinancing operation

    A monthly open market operation, conducted by the Eurosystem, with a usual maturity of three months.

  • Lottery loan

    A loan which is repaid partially every year by means of a draw for redemption of a number of security numbers. Occasionally the draws for redemption may also include a premium.