Sunday 18 April 2021

At least 15 housing corporations in trouble after speculating

At least 15 housing corporations are in financial difficulties after investing money in risky financial products, Nos television reports on Monday.


In total, they have had to find almost €300m to shore up potential losses and 14 have admitted being forced to provide extra guarantees to their banks, Nos says.
The broadcaster carried out its own survey in which 295 of the country’s 398 housing corporations took part.

Vestia

Earlier this year, it emerged Rotterdam housing corporation Vestia had been forced to find an extra €1.5bn in guarantees after investing in financial products where it currently earns less than the interest it has to pay on bank loans.
Baarn-based corporation Portaal is next on the Nos list and has been asked to come up with €99m in addititional security. It is followed by Stichting Mooiland from Ede (€61m) and Staedeon in The Hague (€39m).
The money has not been lost, Nos points out, because if interest rates rise the guarantees will be reduced again.

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