Brussels, 22/02/2013 (Agence Europe) - Dutch bank and insurance company SNS Reaal's nationalisation by the Netherlands was given the go-ahead by the European Commission on 22 February, thus preventing the collapse of the country's fourth largest bank and danger to its financial system (see EUROPE 10777).
The Netherlands will pay €300 million to bail out the bank, along with a bridging loan of €1.1 billion. The Commission's authorisation is only temporary and is granted under the EU state aid guidelines for banks during the crisis. The Commission found that the bailout of SNS Reaal was necessary to preserve the stability of the Dutch financial system, and says that the nationalisation was necessary to ensure the stability of Dutch banking because SNS Reaal is the fourth largest bank and the third largest insurance company, describing it as a wise move because shareholders and owners of hybrid capital in SNS Reaal and SNS Bank will take their share of losses. The state aid may send the Dutch public deficit up to 3% in 2013, according to parliamentary estimates.
SNS Reaal was bailed out in 2010 too, following problems with the company's mortgage division. (MD/transl.fl)