Dutch PM says might do more to help banks, economy

DAVOS, Switzerland (Reuters) - The Dutch government stands ready to help other banks that get into trouble and could also discuss further fiscal stimulus measures within weeks, Prime Minister Jan-Peter Balkenende said on Wednesday.

"We need to stabilize the financial sector. Maybe we have to take other steps," Balkenende told Reuters at the annual meeting of the World Economic Forum.

ING this week tapped into the Dutch government's 200 billion euros loan guarantee scheme, prompting speculation that other banks might follow suit.

Balkenende said the market had reacted well to the deal, noting it was specific to ING, but said it could help others.

"If other banks have difficulties, we will consider it."

Balkenende said the Dutch economy could shrink this year and said it was too early to predict when a recovery might happen, adding the government might consider more measures to boost consumption.

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(Reporting by Emma Thomasson)