Brussels, 30/11/2010 (Agence Europe) - Dutch bank ING will have to fully repay its loans from the Dutch state before it starts reimbursing the €1.2 bn or so that it borrowed from private investors using the Tier 1 hybrid capital raising instrument, the first payment deadline of which is 31 December 2010.
This is what the European Commission decided on 30 November 2010, rejecting ING's request of 16 November to be allowed to reimburse private investors first. The Commission pointed out that ING and its owners must make an appropriate contribution of its own towards the costs of bailing out the bank and must respect the terms of the restructuring plan approved in 2009 (see EUROPE 9782 and 9874). To this end, ING must fully repay the €100 bn provided by the Dutch state in October 2008 before it makes any repayment to private investors.
Alongside this emergency aid (€5 bn of which has already been repaid), ING recited loan guarantees worth €12 bn and aid in 2009 covering 80% of a toxic portfolio of USD 39 bn. (F.G. trans fl)