Dutch Fortis says indirect Madoff exposure may hurt

AMSTERDAM Dec 15 (Reuters) - The Dutch banking unit of Fortis FOR.AS FOR.BR recently acquired by the Dutch government may have a loss of up to 1 billion euros ($1.35 billion) due to loans made to funds that invested in Madoff Securities.

"While Fortis Bank Nederland (Holding) N.V. and its subsidiaries have no direct exposure to Bernard Madoff Investment Securities LLC, parts of the group do have a risk exposure to certain funds it provides collateralised lending to," the bank said in a statement on Monday.

It said holding company Fortis Bank Nederland may post a loss of around 850 million euros to 1 billion euros if the value of the assets of these funds come to nil and the clients could not meet their obligations as a result of the alleged fraud. New York-based Madoff Securities hedge fund is at the centre of an alleged $50 billion fraud. (Reporting by Foo Yun Chee; Editing by David Cowell)