AMSTERDAM Nov 1 The Dutch state said on Friday
it will sell a 6.4 billion euro ($8.7 billion) portfolio of U.S.
mortgage securities that it took over from ING during
the financial crisis, paving the way for the bank to repay its
state aid ahead of schedule.
The original arrangement between the government and ING, set
up in 2009, was intended to reduce risk and uncertainty for ING
stemming from its portfolio of U.S. Alt-A mortgage securities,
and was provided by the state on top of a 10 billion euro
"Market developments now allow the unwinding of the
facility, including selling the securities, with a cash profit
for the Dutch State," ING said in a statement.
The agreement removes one aspect of ING's state ties,
leaving the repayment of the rest of the state aid, analysts
Bailed out by the Dutch state in 2008, ING has been shedding
its insurance, investment management and other assets through
disposals or listings and is cutting thousands of jobs to raise
funds with which to repay state aid and bolster its capital.
"This is positive for ING," said Cor Kluis, an analyst at
"ING had two lines of state involvement, Alt A and state
capital. Now we have this agreement on Alt A, ING has a bigger
motivation to pay back the government ahead of schedule. I think
that by the middle of next year they will have paid back the
government in full, one year ahead of the 2015 deadline."
ING shares were up 1.5 percent at 9.523 euros by 0914 GMT.
ING said earlier this week it would repay another 1.125
billion euros to the state on Nov. 6, including premiums and
interest, bringing the total amount repaid to the state to 11.3
"With this payment we will have paid the Dutch State over 11
billion euros in principal, interest and premiums and we intend
to make our final payments within the next 18 months, resulting
in a total annualised overall return for the Dutch state of 12.5
percent," said Ralph Hamers, CEO of ING Group.
Another tranche was due to be paid in March 2014 and the
final tranche due in May 2015, ING said.