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KBC bank to seek 3.5b euros state aid: reports

KBC bank to seek 3.5b euros state aid: reports

Belgian bank KBC, whose shares have fallen heavily recently, is seeking 3.5 billion euros from the state to recapitalize before today, media reports said, but a company official denied the bank was in "crisis."
Several Belgian media outlets reported Saturday that KBC had asked the Belgian government for the 3.5 billion euro (US$4.4 billion) recapitalization, with meetings scheduled throughout the weekend to find a solution.
"The government will examine, along with shareholders, what actions, if need be, are necessary so that the bank can respond in an appropriate manner to an exceptional situation on the financial market," Prime Minister Yves Leterme told Belga news agency.
KBC is the only major bank in the country not to have turned to the state or foreign establishments for help in the financial crisis.
A member of the bank's management committee said on RTL-TVi television Saturday that "customers really need not worry."
"We are in the process of looking at all scenarios that we can come up with to see how we can position ourselves in the future," Danny De Raymaeker said.
"But it really isn't a crisis that must be resolved in the coming hours."
On Friday KBC issued a statement saying it had a "solid capital base and deposits" but also indicating that it did not rule out seeking guarantees from the state to bolster its competitiveness.


Updated : 2021-08-04 04:41 GMT+08:00