ING wins more time from the EU to sell assets and repay state aid

 
City A.M. Reporter
DUTCH banking and insurance group ING has won more time from regulators to shed assets and repay government aid, avoiding a fire sale but keeping it under state supervision for longer and delaying dividend payments.

The EU’s competition watchdog agreed yesterday that ING, which received €10bn (£8bn) of state aid in the 2008 financial crisis, would have until 2015 to repay the remaining €3bn, plus a premium of 50 per cent.

It also gave the bank until 2018 to sell or list its insurance and investment management arms, though parts of these assets must be sold earlier. The regulator originally ruled ING should divest the businesses and repay state funds by the end of 2013.

ING said it will face restrictions, such as limiting its ability to make acquisitions, until 2015 or until over 50 per cent of its insurance and investment management operations are divested.