BRUSSELS (Reuters) -The Belgian government may decide to sell part of state-owned bank-insurer Belfius before the summer recess begins on July 21, Belgian newspaper De Tijd reported Thursday, citing
Belgian Government Considers Selling Stake in Belfius to Boost Defense Budget
BRUSSELS (Reuters) -The Belgian government may decide to sell part of state-owned bank-insurer Belfius before the summer recess begins on July 21, Belgian newspaper De Tijd reported Thursday, citing sources.
The government is considering selling a 20% to 30% minority stake in Belfius as part of efforts to raise billions of euros for defense spending. Also according to the newspaper, the exact method of the sale, either an IPO or a direct sale, has not yet been determined, as discussions are still in the early stages.
The Belgian government has committed to increase defence spending to 2% of its GDP adhering to current NATO norms by 2029. Defence spending is currently around 1.3% of Belgian GDP, and has never reached the 2% level before. In June, NATO allies agreed to increase overall defence spending to 5% of GDP by 2035.
The Belgian government did not immediately reply to emailed requests for comment, while Belfius said it wouldn't comment on the news report.
Belfius bank was created after the state bought the Belgian banking arm of Franco-Belgian lender Dexia in 2011 for 4 billion euros($4.69 billion) in the aftermath of the financial crisis.
($1 = 0.8520 euros)
(Reporting by Charlotte Van Campenhout; Editing by Kim Coghill)
