"Belgium can't dictate to BNP Paribas"

At the weekend Belgium's Secretary of State for combatting financial fraud, John Crombez, said that he was considering backing calls for Belgium to pull out of the French bank and sell the stake it acquired following the collapse of the Belgian bank Fortis that was rescued by BNP Paribas.

The suggestion came after the French bank was fined nearly 9 billion dollars by the American authorities after it emerged it had channelled 190 billion dollars to states including Sudan that were the subject of sanctions. At the time the Khartoum government faced allegations of genocide in Darfur.

The fact that Belgium is stuck with a caretaker government at least until after the holidays didn't daunt Secretary of State Combez from suggesting pulling out of the bank if it failed to mend its ways.

Emiel Van Broekhoven and Michel Tilmant, the two BNP Paribas board members nominated by the Belgian government, may have been expected to put pressure on the bank to mend its ways, but the Flemish financial daily De Tijd on Tuesday reports that the two bankers sit on the board as independents and in their own name.

Emiel Van Broekhoven told De Tijd: "Michel Tilmant and I do not report back to the Belgian Finance Minister or the state holding FPIM."

The Belgian state holding FPIM that manages our stake in BNP Paribas wasn't impressed by Mr Crombez' words either. FPIM-CEO Koen Van Loo told the daily De Tijd: "BNP's share stood at 62 euros a while ago. We stayed put. Now the share is worth around 50 euros. At the end of the day it's not our decision. It's a matter for the government."

At present Belgium is being run by a caretaker administration following the inconclusive result of the 25 May general election. It would be extremely difficult, if not impossible, for a caretaker government to decide to sell its stake.

The Belgian Finance Minister Keon Geens has called for discretion with regard to future plans for Belgium's 10% stake in BNP Paribas. Mr Geens conceded that being a shareholder wasn't exactly what Belgium was there for, but added that the sale should happen in a serene climate and that this was a decision for a government with full powers.

Mr Geens confirms that he has asked BNP Paribas CEO Jean-Laurent Bonnafé to meet him in Brussels to hear what lessons the bank's management has drawn from recent events also with regard to the transparency afforded to shareholders. In his invitation Mr Geens also voiced concern triggered by the nature and seriousness of the events.