Commission extends in-depth investigation for ING
16 September 2009
In January 2009 the Dutch State and ING implemented a so-called illiquid assets back-up facility for a portfolio of US$ 39 billion. Impaired asset relief has to be properly remunerated and should not give undue advantages to banks.
Competition Commissioner Neelie Kroes said: "The Commission supports Member States' efforts to stabilise financial markets by dealing with banks' impaired assets. However, state aid in the form of impaired asset relief has to be properly remunerated and should not give undue advantages to banks. It is therefore extending its investigation to explore further with the Dutch authorities whether this is compatible with the Commission's state aid rules on impaired asset relief."
In January 2009 the Dutch State and ING implemented a so-called illiquid assets back-up facility for a portfolio of US$ 39 billion (€ 30 billion) par value worth of US residential mortgage-backed securities, mostly backed by so-called Alt-A mortgage loans.
Under the transaction, the Dutch State buys the right to receive future cash flows on 80% of the above-mentioned portfolio.
© European Commission
