Bos guarantees government help for banks

Tuesday 30 September 2008

The Dutch government will continue to rescue banks hit by the current credit crisis, said finance minister Wouter Bos in tv interviews on Monday evening.

Bos added however that the government will only intervene if the country’s economy is at risk and would not bail out small local institutions.

‘We will continue to do what the situation requires,’ he is quoted by the Telegraaf as saying.

The Dutch government announced a €4bn rescue package for troubled Dutch-Belgian financial services group Fortis in the early hours of Monday morning.

Heavy blow

Bos said the fact that Fortis’ shares continued to fall on the Amsterdam exchange on Monday despite the partial nationalisation of the bank was ‘a heavy blow’, report several newspapers on Tuesday. Fortis shares closed 23.6% down on Monday.

He added that he did not have the illusion that the government’s rescue package would influence the markets.

But tax-payers do not need to fear that the state’s stake in Fortis will fall in value because of the heavy losses on the market, Bos is quoted by the Telegraaf as saying.

He pointed out that the government has acquired non-tradeable shares. Bos also stressed that the Dutch banking arm of Fortis is profitable.

© DutchNews.nl

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