08 April 2009

Commission opens in-depth investigation into Fortis and ABN Amro

The Commission has opened an in-depth investigation to establish whether state measures in favour of Fortis Bank Nederland and the activities of ABN Amro which were acquired by Fortis are in line with EU state aid rules.

The Commission has opened an in-depth investigation to establish whether state measures in favour of Fortis Bank Nederland and the activities of ABN Amro which were acquired by Fortis are in line with EU state aid rules.

 

On 3 October 2008, the Dutch state purchased FBN and provided it with loans amounting to tens of billion of euros. On 24 December 2008, the Dutch state purchased the ABN activities from FBN. At this stage, the Commission has reason to believe that the measures may not be in line with its Communications on state aid to banks during the crisis.

 

In particular, the temporal scope and remuneration of the loan facilities and the purchase price of the ABN activities do not seem to meet the criteria set by the Commission.

 

The Commission's preliminary view is that this facility constitutes state aid to FBN and potentially also to the ABN activities. At this stage, the Commission has reason to believe that this aid may not fulfil the conditions laid down in the Communication on how the state aid rules apply to banks during the current crisis. In particular, it doubts that the amount and duration of the facility is limited to the minimum. Moreover, the Commission has doubts that the interest charged by the state is sufficient to avoid distortions of competition and does not merely provide cheap funding to FBN and the ABN assets.

 

The Commission will also investigate thoroughly the purchase of the ABN activities from FBN for a price of €6.5 billion on 24 December 2008. The price paid by the Dutch state may have been above the market value of these activities, thereby providing an aid to FBN. It seems that this measure actually had the effect of a recapitalisation of FBN. The Commission doubts whether the condition for recapitalising banks are fulfilled.

 

Press release

 

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