Height of Dutch state guarantees increase tenfold since 2008 2013-09-30 13:13:13
THE HAGUE, Sept. 30 (Xinhua) -- The height of the Dutch state guarantees has increased a tenfold since 2008, according to a report published by the Dutch Court of Audits on Monday.
By the end of 2012 the Netherlands has soared up to 201 billion euros (271 billion U.S. dollars), the report states. The loan guarantees are destined to Ireland, Greece, Portugal and Spain and are provided by the European financial institutions.
Thanks to these guarantees institutions such as the European Central Bank, the IMF and the European Stability Mechanism were able to lend more money to these countries.
According to the Dutch Court of Audits, it is not clear how risky the issue of these guarantees could be. The Dutch auditors think Finance Minister Jeroen Dijsselbloem should provide more clarity about potential risks.
The Court of Audits also wants the minister to give an opinion on the creditworthiness of the institutions to which the Netherlands issues the guarantees. But according to Dijsselbloem this may negatively affect the creditworthiness of the institutions. Enditem
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