Euronext makes early gains
The Brussels Euronext Stock Exchange made gains during trading on Wednesday morning.
1 October 2008
BRUSSELS -- The Bel-20 index of leading shares was able to recover some of the losses it sustained during the past few days. Nevertheless, the need for government intervention to help prop up two of the country's biggest banks has had negative consequences for confidence of the country’s financial institutions.
The Chinese bank Ping has already let it be known that it no longer plans to invest EUR 2 billion in Fortis.
Meanwhile, two of our biggest football clubs now fear for their sponsorship contracts.
The Belgian cup winners Sporting Anderlecht are sponsored by Fortis, while Dexia is the major sponsor of the thirteen-time champion Club Brugge.
Sporting Anderlecht receives between EUR 5.5 and 7 Million in sponsorship money from Fortis.
This is around a fifth of the Clubs annual income. Dexia gives Club Brugge around EUR 2 million a year and provides 10 percent of the club's annual budget.
Despite the concerns expressed in recent days, both banks have said that the financial crisis will not affect their commitment to their respective football sponsorship deals.
ING no longer interested in ABN-Amro
Despite an injection of around 11,000 million euros of public money, Fortis still needs to dispose of its stake in the Dutch bank ABN-Amro.
Fortis acquired ABN-Amro as part of a consortium with the Royal Bank of Scotland and Spain's Banco Santander.
The takeover of ABN-Amro followed a long-drawn-out battle between Fortis and the Dutch bank ING.
Initially, ING had said it was interested in buying Fortis' stake in ABN-Amro.
However, analysts at ING now say that the EUR 24 million that Fortis is asking for, its share of ABN-Amro, is too much given the current turbulent state of the global financial markets.
The Flemish Prime Minister Kris Peeters (Flemish Christian democrat) is not overjoyed with the fact that his government now holds shares in Dexia.
Speaking in the Flemish Parliament, Mr Peeters said that, "It is not the place of a government to hold shares in a bank."
Meanwhile, the Federal Finance Minister Didier Reynders (Francophone liberal) has said that he is pleased with the way in which Belgium has been able to cooperate with our European neighbours to help save Dexia and Fortis.
[flandersnews.be / Expatica]