The Belgian government is reportedly considering selling off stakes in assets including incumbent telco Belgacom to reduce its budget deficit.
Business newspapers De Tijd and L’Echo said the government is mulling selling 3.5% of its 53.51% stake in…
The Belgian government is reportedly considering selling off stakes in assets including incumbent telco Belgacom to reduce its budget deficit.
Business newspapers De Tijd and L’Echo said the government is mulling selling 3.5% of its 53.51% stake in Brussels-based Belgacom in order to meet EU deficit targets. Other options include selling its 10.6% stake in BNP Paribas or its 43% stake in Royal Park Investments.
The reports stated that the government could raise about €230m (US$293.9m) from the sale of a 3.5% stake in Belgacom, while remaining the majority shareholder. However, this would of course reduce dividends from the company which De Tijd noted have so far been “significant”.
Sales of the state’s stakes in BNP Paribas and Royal Park Investments could generate about €5bn (US$6.39bn) and €740m (US$945.5m) respectively, the reports stated, noting that all three options present complications.
Earlier this month, the European Commission said Belgium needs a workable strategy to reduce its budget deficit. The country risks fines from the EU if it fails to meet targets.
A spokesperson for prime minister Elio di Rupo has declined to comment further on the reports.
