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ING to get Netherlands cash boost | ING to get Netherlands cash boost |
(about 1 hour later) | |
Dutch banking and insurance company ING is to receive a 10bn euro ($13.4bn; £7.7bn) cash injection from the Netherlands government. | Dutch banking and insurance company ING is to receive a 10bn euro ($13.4bn; £7.7bn) cash injection from the Netherlands government. |
The deal was agreed between ING, the finance ministry and the central bank. | The deal was agreed between ING, the finance ministry and the central bank. |
The move will give the government an 8.5% share in ING. It comes after the bank said it expected to make a 500m euro ($670m; £387m) third quarter loss. | |
The government is to make 20bn euros available to protect the financial sector from the credit crisis. | The government is to make 20bn euros available to protect the financial sector from the credit crisis. |
ING is one of the world's largest banks, with more than 85 million customers worldwide, according to its website. | |
The bank has some 338m euros in deposits, Reuters news agency says, and offers banking, insurance, asset management, leasing and real estate services. | |
Dividends suspended | |
Dutch Finance Minister Wouter Bos said ING needed help because of the global squeeze on credit, but insisted the bank was not in major trouble. | |
"We have a healthy company that's being trusted by its customers. We just want to give it extra buffers in order to be able to withstand market forces in these extraordinary times," he said. | |
The government will take an 8.5% share in the bank on a temporary basis and appoint two board members. | |
ING said separately it would cancel dividends for the rest of 2008 and review executive pay. | |
ING has a prominent presence in the UK, with thousands of savers depositing their cash in the group's ING Direct banking service. | ING has a prominent presence in the UK, with thousands of savers depositing their cash in the group's ING Direct banking service. |
ING Direct also took over responsibility for £2.5bn of deposits of 160,000 UK customers with the Icelandic bank Kaupthing Edge - part of Iceland's largest bank, which failed almost two weeks ago. | ING Direct also took over responsibility for £2.5bn of deposits of 160,000 UK customers with the Icelandic bank Kaupthing Edge - part of Iceland's largest bank, which failed almost two weeks ago. |