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Dutch state will make a loss on bank bail-outs: finance minister

Thursday 03 January 2013

The Netherlands will this year make a loss on the billions of euros lent to banks to bail them out of the financial crisis, according to finance minister Jeroen Dijsselbloem.

The minister made the comments at a New Year reception for the Labour party, but will send a detailed briefing to parliament shortly, Nos television reported.

The interest rate the state is paying on the loans to the banks is now higher than the dividends and interest paid by the banks, the minister is quoted as saying.

Nationalisation

The biggest loan taken out by the state was €30bn to rescue and nationalise ABN Amro after its abortive takeover by an international banking consortium. But the dividends earned by the state from ABN Amro are insufficient to offset the cost of the loan, Nos said.

Aegon has completely repaid its loan while ING almost completed its repayments. SNS is also in the process of paying back the cash.

Confusion

RTL news said on Thursday afternoon the minister’s comments had caused a great deal of confusion.

In 2011, the state earned €1.6bn on the loans but this had been all but wiped out last year. But in 2013, the government had expected to spend €1.17bn on interest but to get back €1.33bn in interest and dividends.

Now the government is not expecting to make a profit, questions are being asked about what has changed, RTL said. One theory is that the state will bail out SNS bank, which is in financial trouble over its property investments, the broadcaster said.

© DutchNews.nl



 

Readers' Comments

so first the banks lose so much money that they have to be bailed out with hundreds of millions of euros of taxpayer money, and now they are not able to manage all the bailout (sorry, I meant taxpayer's) money well enough to even cover the costs of the bailout loan? maybe we need to replace the definitions of incompetence and failure in the dictionary to cover this new phenomenon.

By JG | 3 January 2013 2:50 PM

By all means, the Netherlands should follow the failed bailout policies of the United States of America, if the Netherlands wants to stay in the running for the idiocy medal! Do what DOESN'T work, only more of it!

By Drawer 22 | 3 January 2013 8:02 PM

Excuse me for asking but..after firing many employees, receiving how much of tax payer's money? - what the heck did the banksters do & where did all that dosh end up?

I would have thought by now that lessons had been learned! :P

By The visitor | 3 January 2013 10:19 PM

JG: We are talking about tens of billions, not houndreds of millions.
Three out of the four banks have no issues repaying the cash as agreed, one can only pay less interest than required (ABN). This is not that bad.
Drawer22: In the US about 20 million people lost all their pension and general savings in 2008 when banks were *not* bailed out. I think I'm not the only one who would like to avoid that here.

By G | 4 January 2013 9:00 AM

should have asked for a "Jamie deal"

By Dr Ponzi | 4 January 2013 10:43 AM

I knew one guy personally that walked away from ABN after the re-organization with nearly 500k of taxpayer money; this was his 'golden handshake' as the Dutch call it. He now works at a large fund in another management position. He had no problem with his concious at all taking all that money. These types of people are so sad and pitiful to me - always more more more, for themselves. No social conciousness whatsoever.

By B | 4 January 2013 6:00 PM

Ok, this sounds like a good time to change my bank. Does anyone know a good option?

By veggen | 5 January 2013 9:50 PM

Devil is in the details.

By ufo | 7 January 2013 7:53 AM

 
 
 
 
 
 
 
 
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