ING, government ‘at odds’ over sale of US mortgage portfolio

ING and the finance ministry are at odds about how the financial services group should get rid of its American high-risk mortgage portfolio, the Financieele Dagblad reports on Tuesday.

In 2009, the government gave ING a €10bn capital guarantee for the mortgage portfolio. Although other state support has to be repaid by 2015, no deadline was set for the mortgage guarantee.

Now the situation in the US has improved so much that in theory the Dutch state can cancel its guarantee, the FD says. The improvement means ING can sell the portfolio and make a small profit, something which it is keen to do.

However, sources have told the paper current finance minister Jeroen Dijsselbloem is not keen on the divestment.

A ministry spokesman refused to comment, saying that ‘the finance ministry speaks regularly to ING’.

ING publishes its first quarter results on Wednesday and is expected to give more details about the US mortgage valuation, the FD said.

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