FACTBOX-EU turns up heat on bailed out banks: Benelux

Oct 16 (Reuters) - Neelie Kroes, the European Competition
Commissioner whose term in office finishes at year-end, holds
the fate of some of Europe's largest state-aided banks in the
palm of her hand.

Here is a list of the top banks in the Benelux that still
await her verdict, detailing the aid they received, the measures
they have taken to date and the possible payback demanded to
compensate for state aid.

ABN AMRO/FORTIS BANK NEDERLAND (NETHERLANDS):
Type of help: The Dutch government spent 16.8 billion euros
($25 billion) nationalising ABN AMRO [ABNNV.UL] and Fortis Bank
Nederland [FORTH.UL] (FBN) last October. It has subsequently
injected more money into ABN AMRO to keep capital ratios intact.
Status: The Commission has given the Dutch government until
Oct. 19 to sell portions of ABN's assets to comply with a 2007
remedy order to limit its strength in SME banking.

Possible sanctions: Sale talks are ongoing. Deutsche Bank
(DBKGn.DE) and BNP Paribas have been in talks to buy assets from
ABN and FBN [ID:nL2172027]. However, the Deutsche Bank deal is
seen as more likely, as it complies with the original 2007
order. If the assets are not sold, the ABN/FBN merger would be
blocked.

KBC (KBC.BR) (BELGIUM):

Type of help: Belgium and the Flemish regional government
injected 7 billion euros of capital. Under an asset relief plan,
Belgium guaranteed credit portfolios with a notional value of 20
billion euros. The initial 10 percent tranche was covered by
KBC, with the remaining 90 percent by the Belgian state.

Status: In-depth probe underway after temporary approval
granted in June. Restructuring plan was submitted to the
Commission at the end of September. Decision hoped for by
year-end.

Possible sanctions: KBC has two 'home' markets -- Belgium
and eastern Europe -- and has said it aims to keep growing in
the latter. It has some small assets outside its main Czech,
Polish, Hungarian and Slovak markets that could be sold, but
might be forced to sell assets in core countries too. Its London
brokerage and corporate finance house, KBC Peel Hunt, its Irish
activities or Belgian banking unit Centea may have to be shed.

ING (ING.AS) (NETHERLANDS):

Type of help: Dutch government injected 10 billion euros of
capital in October 2008. State also agreed to guarantee 80
percent of a 27.7 billion euro portfolio of so-called Alt-A and
subprime residential mortgage-backed securities. [ID:nLQ136110]
[ID:nBRU006982]

Status: Commission reviewing ING's restructuring plan linked
to the capital infusion. It has extended a review of the loan
guarantee deal, saying it may have unduly favoured ING.

Possible sanctions: ING could be forced to pay more for the
guarantee scheme. KBC Securities has said ING could be forced to
pay another 1 billion euros, or 50 cents per share, to get
approval [ID:nLF346783]. It is also in the middle of a worldwide
asset sale programme to comply with commission guidelines on
restructuring for state-aided banks.

DEXIA (DEXI.BR) (FRANCO-BELGIAN)
Type of help: Received a 6.4 billion euro bailout by France,
Belgium, Luxembourg and key shareholders and won 150 billion
euros in state guarantees for its new borrowing, now reduced to
100 billion euros. Belgium and France also agreed to cover
losses from the retained $16.5 billion of financial products of
U.S. subsidiary FSA, which Dexia has sold. Dexia is to cover the
first $3.1 billion loss on top of $1.4 billion of existing
reserves as of September 2008.

Status: Completed sale of FSA in July and has announced
1,490 job cuts in 2009-2011. Commission launched an in-depth
investigation and said in August the restructuring plan could
distort competition and did not guarantee group recovery. Dexia
has said it aims to operate without state support by end-Oct.
2010. It also agreed to sell its 20 percent stake in Credit du
Nord to Societe Generale, which could raise some 500 mln euros.

Possible sanctions: A main sticking point is the state
guarantee on new borrowing that is set to last for another year.
Commission likely to focus on Dexia's need to shrink its balance
sheet, its financial products portfolio and possible further
divestments.

SNS REAAL (SR.AS) (NETHERLANDS)

Type of help: The banking and insurance company received 750
million euros of state aid last year.

Status: SNS sold 26 million new shares in September to pay
back a quarter of state aid. Viability plan submitted by July.

Possible sanctions: SNS is not expected to be forced into
further action as the amount of aid it received was small
relative to its size.

($1=.6259 Pound)

($1=.6710 Euro)

($1=6.911 Swedish Crown)

(Compiled by Kirstin Ridley and Steve Slater in London, Ed
Taylor in Frankfurt, Boris Groendahl in Vienna, Gilbert Kreijger
in Amsterdam, Phil Blenkinsop in Brussels, Andras Gergely in
Dublin, Sven Nordenstam in Stockholm, Julien Ponthus in Paris)