BRUSSELS, Oct 12 (Reuters) - Belgium will begin charging banks for guaranteeing deposits and insurance products starting next year, the government said on Monday.
Core cabinet members agreed on the measure that will bring in 220 million euros ($323.8 million) in 2010, 670 million euros in 2011 and an estimated 540 million euros in the following years, the finance ministry said in a statement.
The main banks operating in Belgium are Franco-Belgian Dexia, Belgium's KBC, BNP Paribas Fortis and ING of the Netherlands. Fortis is the country's leading insurance provider.
Belgian Prime Minister Herman Van Rompuy is due to announce the measure, part of the 2010 budget, to parliament on Tuesday.
The finance ministry said the financial services companies would be charged 10 basis points in 2010 and 2011 and then a recurring contribution of 15 basis points afterwards for the total amount guaranteed.
Belgium raised the amount of a deposit or insurance product it would guarantee to 100,000 euros last year after the financial crisis struck.
Belgium has spent over 20 billion euros bailing out financial institutions since the end of September 2008.
(Reporting by Philip Blenkinsop; Editing by Andrew Hay) ($1=.6795 Euro) Keywords: BELGIUM BUDGET/ (philip.blenkinsop@reuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Core cabinet members agreed on the measure that will bring in 220 million euros ($323.8 million) in 2010, 670 million euros in 2011 and an estimated 540 million euros in the following years, the finance ministry said in a statement.
The main banks operating in Belgium are Franco-Belgian Dexia, Belgium's KBC, BNP Paribas Fortis and ING of the Netherlands. Fortis is the country's leading insurance provider.
Belgian Prime Minister Herman Van Rompuy is due to announce the measure, part of the 2010 budget, to parliament on Tuesday.
The finance ministry said the financial services companies would be charged 10 basis points in 2010 and 2011 and then a recurring contribution of 15 basis points afterwards for the total amount guaranteed.
Belgium raised the amount of a deposit or insurance product it would guarantee to 100,000 euros last year after the financial crisis struck.
Belgium has spent over 20 billion euros bailing out financial institutions since the end of September 2008.
(Reporting by Philip Blenkinsop; Editing by Andrew Hay) ($1=.6795 Euro) Keywords: BELGIUM BUDGET/ (philip.blenkinsop@reuters.com; +32 2 287 6838; Reuters messaging: philip.blenkinsop.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
