Flanders authorities provide 2-billion-euro aid package for KBC

23rd January 2009, Comments 0 comments

Flanders region takes non-voting stake in bank's capital.

BRUSSELS - Authorities in the Flanders region of Belgium have agreed to provide struggling bank KBC with 2.0 billion euros (2.6 billion dollars) in exchange for a non-voting stake in its capital, KBC said Thursday.

"The group is further strengthening its capital base by a two-billion-euro non-dilutive core capital issue to be subscribed by the Flemish regional government," KBC said in a statement.

"An addition, a stand-by core capital facility of 1.5 billion euros is also being provided," it said.


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