10 Oct 2008

Dutch govt to bolster financial sector

5:08 pm on 10 October 2008

The Dutch government is preparing 20 billion euros in funding to support financial institutions in the Netherlands during the credit crisis.

Finance Minister Wouter Bos announced on Thursday that financial insitutions would "now have certainty" and the move was "to prevent big problems."

Last Friday, the government announced it would nationalise the Dutch activities of Belgian-Dutch banking group Fortis in a $US16.8 billion euros deal.

On Tuesday, the finance ministry said the government would increase its bank deposit guarantee to 100,000 from $US38,000.