Sale of the state-owned Fortis Bank too risky

The Belgian government is currently weighing up whether it should sell the crisis-ridden Fortis Bank to the French bank BNP Paribas. The daily De Standaard writes that the poor terms of sale warrant the state's holding on to the bank: "Economists could not agree in recent months on whether this risk is one our country can bear, above all because [the banks] Dexia and KBC are still not in the clear. But the terms BNP Paribas has offered recently mean that Belgium's risks are at least as high with a sale as if the state retains ownership. Whatever decision the government takes, the shareholders of Fortis Holding who prevented the sale to BNP Paribas last month and in so doing brought on the new round of negotiations can pat themselves on the back. Because who will profit from the new negotiations apart from the lawyers? ... The Belgian taxpayers are now faced with even higher risks and possible losses than they already were."

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