BRUSSELS (Belgium) - EUROPEAN Union regulators on Thursday approved a 10 billion euro (S$19 billion) emergency capital injection into Dutch bank ING Group NV.
Last month's investment by the Dutch government was meant to prevent a run on the bank and insurance giant amid the global financial crisis.
EU Competition Commissioner Neelie Kroes said the investment was in line with European rules on such emergency measures, which many EU governments have taken in past weeks to prevent the collapse of financial institutions.
Dutch authorities carried through their special investment on Wednesday, ensuring ING kept its credit rating intact.
Under the deal, the Dutch government has bought 1 billion newly-issued nonvoting shares with special rights at euro10 euro per share. The shares will earn at least 8.5 per cent interest once ING begins paying dividends again, and that amount will escalate each year. But ING can repurchase the shares for euro15 euro.
ING was among the top 20 financial services companies globally in terms of market capitalisation in March, but its stock has lost nearly three quarters of its value since then. -- AP
