Belgian Deputy Prime Minister Open to BNP Paribas Stake Sale

Belgian Deputy Prime Minister David Clarinval sees the country’s 5.7% stake in BNP Paribas SA as non-strategic and suggested he would be open selling some or all of the holding.

“In principle, I’m not opposed to it,” Clarinval, who is a member of the coalition MR party, said in an interview with L’Echo. “BNP Paribas is a non-strategic asset that represents a significant amount of money,” he said, adding the idea had not been recently discussed within the coalition.

Clarinval was asked about a Bloomberg report that some in the government favor selling the stake after other, ongoing divestment processes are wrapped up. The country is selling a 20% stake in Belfius Bank SA, and is currently in a binding offer phase.

Read More: Belgian Government Facing Push to Sell 5.7% BNP Stake

Belgium has joined other governments around Europe in taking the opportunity to capitalize on a rise in bank shares in recent years by selling stakes built up in the global financial crisis-era. Clarinval’s comments add momentum to include BNP Paribas in the divestment push, after an idea to sell BNP shares to finance a defense fund was shelved last year.

The country has previously sold some of its stake in BNP, which it had acquired as part of a 2008 deal that saw the French bank take control of Belgium’s Fortis.

Clarinval told L’Echo that the country could go further with Belfius as well, saying he is “not closed to the idea” of listing 30% of the company on the stock exchange. “But I wouldn’t want to complicate things in terms of the current strategy,” he added.

Read More: Belgium to Proceed With Belfius Stake Sale After Tie-Up Talk

Clarinval’s party has also sought a tie-up between Belfius and publicly-owned insurer Ethias, though it’s faced opposition from other members of the five-party coalition.

The government faces a number of challenging issues before the end of the year, including tying up the partial privatization of Belfius and reaching a fraught budget deal. Prime Minister Bart De Wever has already missed a mid-October deadline, as he seeks to reach agreement on a €10 billion deficit reduction by 2029.