Dutch banks can repay crisis debts early
Finance Minister Jan Kees de Jager has told MPs he will allow the early repayment of bonds issued by Dutch banks during the financial crisis and supported by government guarantees.
The Dutch financial sector is now considered strong enough to do without state support and the banks are eager to pay back the loans for which they issued the government-backed bonds.
Mr De Jager is, however, insisting the banks pay 15 percent charge if they repay the bonds before they mature. Dutch banks still owe about 50 billion euros in the state-guaranteed loans.
In October 2008, the government introduced a system under which it guaranteed mid to long-term loans between banks. It ended up guaranteeing about 200 billion euros’ worth of bonds. Since December 2009, no more use has been made of the system which is being wound up at the end of 2010.
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