Nationalisation SNS REAAL

On 1 February 2013, shares and subordinated debts of SNS REAAL and its subsidiaries were expropriated by the Dutch government. Debt cancellation by the government leads to improvement of SNS REAAL’s financial position by more than 1 billion euros. Now that it is nationalised, SNS REAAL’s debt has decreased and its value has risen. If the bailout amount for saving a government-owned company exceeds the value of the company, this will have a negative impact on the government balance sheet according to EU monetary rules. In that case, the bailout is not defined as an investment, but rather as a transfer. If the nationalisation price - as in the case of SNS REAAL - is lower than the value of the company, the bailout is defined as an investment and the price has no effect on the public balance sheet. On 1 February, the government announced various other steps to be taken, e.g. splitting off the property finance division of SNS REAAL. These measures will not have any consequences for public finances until they are implemented.