KBC to replace CEO with interim chief

Vanhevel, 61, was the group’s chief executive for central and eastern Europe and Russia, where the company has major operations, until he was called to stand in for Bergen at the beginning of June.

He is to take the chief executive position permanently on September 1.

Belgian media have reported that Bergen, 59, had heart surgery on May 11, days before Belgian authorities scrambled to organise a third injection of state cash in case its capital base needed further support.

The group also announced a shake-up of other top management positions, including in particular the resignation of the head of merchant banking, Guido Segers.

Earlier Tuesday the European Commission gave the green light for six months to both a 3.5 billion euro (5.0 billion dollar) recapitalisation of the group and plans to help KBC shoulder troubled assets with state guarantees.

However, the commission called on Belgian authorities to submit a restructuring plan for the group within three months so that it could do an in-depth analysis into whether the bailout went against EU state aid rules.

AFP/Expatica