BRUSSELS, Belgium The Belgian prime minister says the troubled Dutch-Belgian banking and insurance giant Fortis NV will be partially nationalized.
Prime Minister Yves Leterme says the deal was reached during talks today between E.U. and national banking officials and ministers from the Belgian, Dutch, and Luxembourg governments.
The deal will see the three governments pour 11.2 billion euro ($16.4 billion) into the bank.
Fortis will also be forced to sell off its stake in Dutch bank ABN Amro, which it partially took over last year.
All three nations hope to prevent Fortis from falling victim to the credit crisis and to reassure investors and account holders that their money is not at risk.