ING to Pay $1.55 Billion to Return Portion of Dutch Aid
ING Groep NV (INGA), the biggest Dutch financial-services company, plans to pay 1.13 billion euros ($1.55 billion) to the Netherlands on Nov. 6, taking it halfway through a state-aid repayment schedule agreed with European Union regulators last year.
ING will return 750 million euros of a 10 billion-euro bailout received in 2008, with 375 million euros in premiums and interest, the Amsterdam-based company said in a statement today. The third and fourth portions will be paid in March 2014 and May 2015 at the latest, it said.
With final repayments within the next 18 months, the country will make a return 12.5 percent on the capital provided, ING said. ING has so far repaid 7.8 billion euros in aid and 2.4 billion euros in interest and premiums.
The repayment announced today will cut ING’s banking unit’s core Tier 1 ratio by about 40 basis points, the company said. The ratio, a measure of a bank’s ability to absorb losses, stood at 11.8 percent at the end of June.
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