Belgium's Bold Stride: Selling Belfius Stake to Boost Defense

The Belgian government considers selling a 20-30% stake in state-owned bank-insurer Belfius to fund increased defense spending, adhering to NATO norms. Discussions are ongoing regarding the method of sale, which could be an IPO or a direct sale. Belfius was acquired by the state in 2011.

The Belgian government is contemplating the sale of a minority stake in the state-owned bank-insurer Belfius, according to sources cited by Belgian newspaper De Tijd. This strategic move aims to secure billions of euros essential for fulfilling its defense spending commitments.

Driven by a pledge to increase defense spending to 2% of GDP by 2029, the government is exploring options, including an IPO or a direct sale of the 20-30% stake. However, discussions remain in preliminary stages, and no decision has been made yet.

Belfius came under state ownership in 2011 when Belgium purchased the financial arm of Franco-Belgian lender Dexia post-financial crisis, costing 4 billion euros. As the news circulates, both the government and Belfius have refrained from providing comments.

(With inputs from agencies.)