Amsterdam - Dutch Fortis/ABN Amro bank is to receive 4.4 billion euros (6.6 billion dollars) in extra state support, Finance Minister Wouter Bos wrote in a letter to parliament on Thursday. The move marks the third time in one year the state comes to the rescue of the Dutch division of ABN Amro and Fortis banks.
On October 4, 2008, the Netherlands paid 16.8 billion euros to nationalize Fortis bank Netherlands, which also comprised ABN Amro Bank. The government later said it intended to merge both banks.
In his letter, Bos said the extra state support was necessary to complete the merger so that ABN Amro can become a fully independent bank in the long run.
He added it would be the last time for the bank to receive government assistance.
In June, ABN Amro/Fortis received a capital injection of 2.5 billion euros.
Bos also wrote the state received 700 million euros for the sale of ABN Amro's subsidiary Hollandsche Bank Unie (HBU) to Deutsche Bank.
European Union Competition Commissioner Neelie Kroes had requested the sale of ABN Amro's subdivision as a precondition to approve the merger of ABN Amro and Fortis Bank Netherlands in an attempt to avoid the new banking combination from dominating the market.
ABN Amro/Fortis Bank Netherland is one of several Dutch banks that received state support since September 2009 as a result of the financial crisis.
Bank and insurance giant ING, which recently announced it would divest its insurance operations from its banking activities and sell its US subsidiary ING Direct, received 10 billion euros in state support. SNS Reaal received 750 million euros from the government.
