EU approves additional recapitalization of ABN AMRO, Fortis

The European Union (EU)'s competition guardian said the additional aid of 6.9 billion euros (9.4 billion U.S. dollars) is necessary to finance the separation of ABN Amro from its mother company and the integration costs resulting from the merger between FBN and ABN Amro.

"This recapitalization package is a further step towards the restructuring of Fortis Bank Nederland and ABN Amro," said EU Competition Commissioner Neelie Kroes.

At the same time, the commission extended the scope of its in-depth investigation, opened in April 2009 into an aid package related to the purchase of FBN by the Dutch government, to include these additional measures.

It said the probe would allow the commission to assess in detail the combined effect of all the support measures in favor of FBN and ABN Amro and give interested parties an opportunity to comment on the additional measures.

"I sincerely hope that ABN Amro and Fortis will rapidly finalize their integration plans and resume their role as lender to the real economy in the Netherlands. The Commission will in the meantime make sure that competition is preserved," Kroes said; Kazinform cites Xinhua. See www.news.xinhuanet.com for full version.