Dutch Government to Inject EUR10 billion in ING

October 20, 2008 · By Faizan Filed Under Economy, Finance, Investing, News Tagged as: Dutch, Finance, ING

After government intervention from the United States to South Korea to Germany, and now the Dutch government is set to take action to protect the nations economy from the global financial crisis. It would be injecting about10 billion Euros into ING Groep NV (ING) in an accord signed with the Dutch Central bank.

ING, banking and insurance group, attempted to pad its capital position in order to brace itself from the effects of the global crisis. ING in an official statement said it would issue EUR10 billion worth of non-voting Tier-1 securities to the Dutch State Bank.

ING Chief Executive Michel Tilmant said “Our capital position was in line with previously targeted levels and regulatory requirements. However, market conditions have changed dramatically in recent weeks and have led to an internationally recognized belief that going forward, in this market environment, capital requirements for financial institutions should be higher,”

The Dutch government would get 2 seats on ING’s supervisory board and 8% annual interest on the securities. Giving the Dutch government veto rights on acquisitions and investments involving more than 25% of the invested funds.

The Dutch financial minister said that ING was a healthy company and the move was made to maintain the company’s strength during the global financial turmoil.

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