AMSTERDAM, June 17 (Reuters) - Dutch banks’ exposure to central and eastern European countries, hard hit by the credit crisis and recession, is about 11 percent of the national gross domestic product, the Dutch central bank (DNB) said on Wednesday.
Emerging Europe is suffering from the global recession and bad debt, which started to rise in the first quarter and will increase throughout the year as the region’s boom comes to an abrupt end.
The Netherlands’ exposure compares to 70 percent of GDP for Austrian banks, DNB said. Data from the Bank for International Settlement showed in January that Germany as a country had an exposure of 6.6 percent of GDP and Belgium 30.1 percent. [ID:nL2246926]
The Dutch exposure covers countries such as Poland and Latvia, and DNB also included Russia and Turkey in the number, it said in its quarterly report.
Based on the Netherlands’ 2008 GDP of 595 billion euros ($826 billion), the exposure would amount to some 65.5 billion euros.
DNB did not name specific companies, but Dutch bank and insurer ING ING.AS(ING.N) earned about 5 percent - or 3.3 billion euros - of its operating income last year from eastern European countries, including Turkey.
Euro zone banks could see losses of 7 percent of their Tier 1 capital if worst-case scenarios for emerging countries in Europe, Asia and Latin America materialise, the European Central Bank said in its financial stability report on Monday. [ID:nLF546576] ($1=.7200 Euro) (Reporting by Gilbert Kreijger; Editing by Toby Chopra)