Netherlands increases bank deposit guarantee

7th October 2008, Comments 0 comments

The Dutch government raises its guarantee on bank deposits to avoid withdrawals, while other EU members and parties debate deposit protection.

7 October 2008

THE HAGUE -- Deputy Finance Minister Jan Kees de Jager announced that the Netherlands will raise its guarantee on bank deposits to avoid withdrawals, though it did not yet decide the exact amount.

The guarantee is currently EUR 38,000. Mr De Jager does not favour full coverage such as the German and Irish governments introduced.

European Union finance ministers are currently meeting in Luxembourg to consider ways to increase cooperation on government bank deposit guarantees.

The conservative VVD party wants the government to guarantee bank deposits in full, to prevent account holders from moving their savings to foreign banks.

VVD leader Mark Rutte says a full guarantee is important to avoid Fortis and ABN Amro banks, nationalised on Friday, being able to compete unfairly with other Dutch banks such as ING or Rabobank.

[Radio Netherlands / Expatica]

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