Dutch Court to Hear Parties on SNS Nationalization on Feb. 15
The top Dutch administrative court will hear on Feb. 15 SNS Reaal NV investors’ appeals of the government’s decision to expropriate their securities.
The administrative court of the Council of State will rule on the legitimacy of the nationalization by Feb. 25 at the latest, said Wendy van der Sluijs, a spokeswoman for the court in The Hague. As many as 49 appeals had been filed as of yesterday as a Feb. 11 deadline approaches.
Dutch Finance Minister Jeroen Dijsselbloem took control of SNS Reaal on Feb. 1 after real-estate losses brought the bank to the brink of collapse. The nationalization included issued shares and subordinated bonds. The expropriation of subordinated creditors reduced the rescue costs for the state by about 1 billion euros ($1.4 billion), Dijsselbloem said.
The bailout of SNS Reaal will cost taxpayers 3.7 billion euros in write-offs and capital injections, and the government is also providing 6.1 billion euros in loans and guarantees. Other Dutch banks will pay a one-time levy of 1 billion euros in 2014 to share in the costs of the rescue. In exchange they get two years’ respite to start paying into a deposit guarantee fund, Dijsselbloem said.
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