The Queen abdicates, but the State has other things to think about. L'Netherlands has just reached into the public purse for nationalize Sns Real, a banking and insurance group in great difficulty. The operation cost taxpayers 3,7 billion euros. This was announced by Dutch Finance Minister Jeroen Dijsselbloem.
"Today the state took over Sns Reaal in its entirety - said Dijsselbloem during a press conference - The nationalization is complete". At this point, the Bank's shareholders and subordinated creditors travel inexorably towards the total loss of their investment. As far as current account holders are concerned, on the other hand - as happens throughout the Eurozone - the guarantee on credits is up to 100 thousand euros.
The institution is the same that in 2006 took over the properties of Abn Amro Holding Nv. In recent years, however, Sns Real has suffered heavy losses in the real estate sector and has seen its core tier 1 decrease to 8,8%, below the minimum solvency threshold set by law by the European banking authority (equal to 9%).
It is the fourth Dutch bank in size and the assets in its portfolio exceed 130 billion euros. In 2008 he had already collected public aid for 750 million and until yesterday talks were underway with private investors for a possible takeover. In particular, the name of CVC Capital Partners, a private equity fund that seemed ready to inject 1,8 billion into the Bank.
Not even 24 hours ago though, Moody's it resulted in the umpteenth downgrade on the institute, arguing that "extraordinary public support would be necessary to buffer the very serious problem caused by the weakness and poor quality of the assets in the real estate portfolio".
In the same hours the negotiation with CVC Capital Partners went up in smoke. And the state no longer had a choice.
Attachments: Expatica Netherlands
