Over 30,000 DSB savers request advance

27th October 2009, Comments 0 comments

More than 30,000 DSB bank account holders have taken up the central bank’s offer to apply for a EUR 3,000 advance.

The Netherlands – More than 30,000 DSB bank account holders have applied for an advance on the guarantee scheme.

Last week, the central bank announced people with savings at the bankrupt DSB Bank can apply for a EUR 3,000 advance now and receive their remaining savings of up to EUR 100,000 before Christmas.

Most of the 110,000 DSB bank account holders have savings of less than EUR 100,000 and will be fully reimbursed under a government deposit guarantee system.

In all, the savers had EUR 3.6 billion in the bank.

The DSB bank was declared bankrupt last week after bank owner Dirk Scheringa did not manage to find a potential buyer for the ailing institution.

The bank went bankrupt after self-appointed financial watchdog Pieter Lakemen called on account holders to withdraw their savings. Thousands of people had gotten into financial difficulty because of DSB's sold clients insurance policies they did not need and extended mortgages they could not afford. These mortgages often far exceeded the value of the underlying property, making it impossible for the owners to sell their homes without going into debt.

Account holders withdrew some EUR 600 million in two weeks earlier this month, about a sixth of the bank's deposits.

Meanwhile, Scheringa who owns Museum for Realism in Spanbroek told the Dutch press he wants his art collection to remain intact.

The 1,300 art works were impounded last week by ABN Amro Banks as they are collateral for DSB's EUR 32 million mortgage debt. They include works by Dutch realists Carel Willink and Jan Mankes, as well as paintings by René Magritte and Lucian Freud.

Last week, Dutch Culture Minister Ronald Plasterk called on the art sector to make every effort to preserve the collection in one piece.

However, Art critic Reinjan Mulder wrote in NRC Handelsblad that the paintings and sculptures did not constitute a collection in the usual sense. He referred to a lack of coherence, to the uninspiring history of the collection, and to the absence of an underlying perception on the part of the collector.

Radio Netherlands / Expatica

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