Dutch Government Expects EU To Extend Temporary OK For ING Deal
15 September 2009 - 7:22PM
Dow Jones News
The Dutch Finance Ministry expects the European Union's
Commission to extend temporary approval for a EUR22 billion
guarantee on ING Group NV's (ING) Alt-A mortgage securities.
"We are still in constructive talks with the (commission) and we
expect them to extend the temporary approval for the deal later
Tuesday," a spokeperson for the Finance Ministry said. She added
the talks take longer because of the complex nature of the
deal.
In January, ING announced an agreement with the Dutch government
on an Illiquid Assets Back-up Facility covering 80% of ING's Alt-A
mortgage securities. ING will remain the legal owner of 100% of the
securities and will remain exposed to 20% of any results on the
portfolio.
The European Commission earlier said it will make a statement on
the Dutch government's state aid to troubled bancassurer ING later
in the day. "There will be a statement later today," said the
commission's competition spokesman Jonathan Todd.
- By Robin van Daalen; Dow Jones Newswires; +31 20 571 5201;
robin.vandaalen@dowjones.com