ABN gets new US$6.5b bailout
By Toby Sterling |
November 20, 2009, Friday
|
Print Edition
Print Edition
THE Dutch government yesterday announced a new 4.4-billion-euro (US$6.5 billion) bailout package for nationalized bank ABN Amro, intended to help the bank restructure and return to a strong financial position ahead of an eventual sale or return to the stock market.
Finance Minister Wouter Bos said the money is needed to pay for combining the banking operations of the old ABN Amro and Fortis Bank in the Netherlands, and to replenish a shortfall in capital caused by selling off a portion of ABN Amro's operations to Deutsche Bank.
The bailout comes on top of a 2.4-billion-euro cash injection in June and the 16.8 billion euros the state paid to buy the banks' Dutch businesses to save them from an impending bankruptcy in October 2008.
The package announced yesterday consists of a 3-billion-euro capital injection and paying off 1.4 billion euros of debt.
"This capitalization is necessary, desirable and prudent," Bos said in a letter to parliament, urging lawmakers to endorse the move.
"Barring unforeseen consequences, this capital injection will be the last that the state grants," he said.
Finance Minister Wouter Bos said the money is needed to pay for combining the banking operations of the old ABN Amro and Fortis Bank in the Netherlands, and to replenish a shortfall in capital caused by selling off a portion of ABN Amro's operations to Deutsche Bank.
The bailout comes on top of a 2.4-billion-euro cash injection in June and the 16.8 billion euros the state paid to buy the banks' Dutch businesses to save them from an impending bankruptcy in October 2008.
The package announced yesterday consists of a 3-billion-euro capital injection and paying off 1.4 billion euros of debt.
"This capitalization is necessary, desirable and prudent," Bos said in a letter to parliament, urging lawmakers to endorse the move.
"Barring unforeseen consequences, this capital injection will be the last that the state grants," he said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
