English
The Belgian State will inject 3.5 billion EUR (4.3 billion USD) in KBC Group NV, the country"s biggest bank and insurance company, in a bid to support the group, whose shares have been plunging for weeks. KBC announced they would issue preference shares worth 3.5 billion EUR to the Belgian State, following the example of other banks in the world. The operation will not affect the holdings of existing shareholders and will not give the Belgian State any voting rights. However, the Belgian State will appoint two representatives to the KBC Board. KBC also announced their decision not to pay dividends for 2008. As for the forthcoming capital injection, the group will use 2.25 billion EUR to consolidate banking operations and 1.25 billion EUR for the insurance division. The group stressed that they were having no liquidity or solvency problems. In Romania, KBC holds KBC Securities. The group derives nearly a third of their profit from banks, brokerage firms and insurance companies in Hungary, Poland, Slovakia, Russia, Serbia, Bulgaria and Romania. KBC also holds Ceskoslovenska Obchodni Banka AS, the largest bank in the Czech Republic by assets and 30% in Nova Ljubljanska Bank d.d., the largest creditor in Slovenia.
KBC Group To Receive 3.5 Bln EUR Capital Injection
F.A.
English Section / 28 octombrie 2008
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