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ABN AMRO needs 3b euro
Thu, Nov 19, 2009
Reuters

AMSTERDAM/THE HAGUE - THE Dutch government will have to inject another 3 billion euros (S$6.19 billion) cash into nationalised bank ABN AMRO as it completes an asset sale to Deutsche Bank and a legal separation from RBS, the finance ministry said on Thursday.

The ministry also disclosed that the asset sale to Deutsche Bank is worth 700 million euros, and that it could collapse unless parliament approves it by Dec 31. Deutsche Bank declined to comment.

The government nationalised Fortis's local operations in Oct 2008, including ABN AMRO, for 16.8 billion euros. That came one year after a consortium including Fortis and RBS bought the bank.

The government subsequently pumped another 2.5 billion euros into ABN AMRO this summer to help fund the split of the state-owned assets from assets legally owned by RBS. That separation is expected to be completed in the first half of 2010.

The deal with Deutsche Bank, agreed on Oct 20, involves the sale of some ABN AMRO assets serving the small and medium enterprise market. The European Commission ordered Fortis to sell those assets in 2007, an obligation the Dutch state inherited after the nationalisation.

The finance ministry said in a statement the new capital injection plus the one from earlier this year will collectively raise the national debt by 0.5 per cent of GDP and will require changes to the budget.

 

 

 

 

 
 
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