Another €3bn from the state for ABN Amro
Thursday 19 November 2009
The Dutch state is to provide a further €3bn capital injection to pay for the integration of ABN Amro and Fortis Nederland, finance minister Wouter Bos said in a statement on Thursday.
In addition, loans amounting to €1.4 bn will be converted into equity, the minister said.
The new capital injection is 'necessary, advisable and prudent,' Bos said. The money means the two banks can complete their merger and meet central bank capital demands, he said.
The two banks were nationalised in 2008 after their Dutch Belgian parent company Fortis came close to collapse. The state paid some €16.8bn to take them over. In December last year, Bos bought €6.5bn worth of shares in ABN Amro. A further €2.5bn was put into the combine in June.
Bos's letter to MPs also revealed that Deutsche Bank is paying €700m to take over HBU and other ABN Amro units ordered by the European Commission.
© DutchNews.nl
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Monday: Between 2º and 5º with light snow or sleet. Around zero at night. Similar Tuesday
Please help me to understand!!
This would be the second capital injection by our government in results of the advise of our finance minister.
While more then half of the Dutch Public is facing worst pressures of the financial recession and not able to pay their utility bills, the bank top officials are getting 'unbelievable amounts of salaries and bonuses!!
Why can't they live with the minimum income levels along with other hundreds of thousands of house holds who are forced to continue under the existing poverty!!
Unfortunately Dutch Public have a tendency to welcome all sorts of reductions and cuts without using their valid rights to at least protest!
By Khalid Ahmed Chaudry | November 20, 2009 1:43 PM