BRUSSELS, Feb 12 (Reuters) - Belgian financial group KBC will not pay back all of its state aid before the end of 2015 because it is cautious on new central bank rules and does not need to pay a coupon to the Flemish regional government this year, its Chief Executive said.
“2015 is a year when we won’t pay a coupon so the state aid is a zero capital cost,” CEO Johan Thijs told a conference call. “Combined with the conservative stance and uncertainties, it means that we are not going to pay it back before year end.”
Thijs added that he did not like the state aid on his company’s books.
The group, which needed 7 billion euros ($7.93 billion) of state aid during the 2008-2009 financial crisis, has already repaid 5 billion and unwound 25 billion euros of collateralised debt obligations over past quarters. (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)