More help for banks on the cards

Finance minister Wouter Bos is not ruling out a second round of capital injections for the financial sector, reports the NRC on Thursday.


Bos told MPs yesterday afternoon that he is keeping an eye on what is happening in the US where a new round of government help is taking place. ‘I don’t know if that will be necessary here, but we are not ruling it out,’ NRC quotes him as saying.
Bos says figures show that loans are still growing, despite some problems. Banks earn money on loans and if they are lending less, they will have a good reason, he told parliament. ‘They are not doing it to harm businesses,’ he said.
Following a ring-round of highly placed financial source yesterday, the NRC concluded that governments expect more major support will be required in the next few weeks to improve the health of the financial sector.
Dutch banks have so far written off almost €22bn and been extended €32bn in new capital. The government has set up a €20bn bail-out fund for financial institutions and a €200bn loan guarantee scheme to stimulate inter-bank loans.

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