Introduction
BNP Paribas shares fell following reports that the Belgian government is considering selling its stake to establish a defense fund.
Context
- The stock declined by 2.6% around 0816 GMT.
- The European Stoxx banking index dropped by 1.1%.
- Traders attributed BNP's sharper decline to the news of a potential Belgian sale.
Developments
- Despite this, BNP's stock had increased by 32.5% since the beginning of the year.
- The stock reached an 18-year high last week.
- Belgium currently holds a 5.6% stake in BNP Paribas through its financial arm, SFPIM, after acquiring Fortis Bank Belgium in 2009.
- The Belgian government did not immediately respond to a request for comment.
- At current market value, the sale of 63.3 million shares would be worth approximately 4.84 billion euros.
- Belgium is exploring funding options to meet its defense spending target of 2% of its gross domestic product this year, the minimum agreed upon by NATO allies.
Conclusion
The situation surrounding BNP Paribas and the potential sale of its shares by the Belgian government highlights significant developments in the banking sector, particularly with the intersection of fiscal policies and security spending commitments.