perspirant

The mission views state interventions as broadly appropriate and effective. The enlargement of deposit insurance and systemic liquidity were in line with EU-wide measures. While the government has nationalized the Dutch activities of Fortis, and purchased Fortis’ share of ABN-AMRO, it has no interest in long-term state ownership and recognizes the danger of competitive distortions. The injections of capital in the form of preferred shares, linking preferred and equity dividends, restrictions on equity dividends, and incentives for quick redemptions are consistent with a sound “fix-it-and-exit” approach. The mission also supports the authorities’ decision to permit pension funds five years to restore funding ratios, and encourages a gradual move toward a more balanced mix of defined-contribution and -benefit plans.

preliminary conclusions