Thursday 07 July 2022

The Netherlands creditworthiness not in doubt, no short-selling ban

There is absolutely no doubt about the Netherlands’ AAA credit rating, even if the eurozone emergency fund for weaker EU economies is expanded, the Financieele Dagblad quotes rating agencies as saying on Friday.


Both Fitch and Standard and Poor’s told the paper the Netherlands is secure and there is no danger it would be downgraded.
Earlier this week, finance minister Jan Kees de Jager had hinted Dutch creditworthiness could be affected if the Netherlands has to put too much money into the fund.
In fact, the emergency fund, which aims to keep the eurozone intact, is more a form of protection for the Dutch AAA status, the agencies told the paper.
Short-selling

Meanwhile, the Dutch financial sector watchdog AFM has said it sees no reason to follow France, Italy, Belgium and Spain in imposing a temporary ban on a form of trading known as ‘short-selling’.
According to the BBC definition, short-selling involves borrowing shares or bonds, selling them and buying them back when the stock falls – pocketing the difference.
Although the Amsterdam blue chip index AEX opened sharply down on Friday, it had more or less recovered after one hour of trading.

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