With a new Dutch government in place....>

NETHERLANDS: With a new Dutch government in place yesterday, Rabobank research

highlights some takeaways of its policies.

- ABN AMRO and de Volksbank to be sold ASAP. They report "Last we heard on this

was that the Netherlands Financial Investments (NLFI), the holding company of

the state, believed de Volksbank was not ready for privatisation...we understood

a government exit would not be on the table for the next two years"

- Tax deductibility of mortgage interest payments will be reduced from 2020

onwards, although Rabo say that this is not new.

- New pension contribution method. "The change in pension contribution method

will likely increase duration because younger people will receive a relative

larger amount of the contribution compared to the current system. In the short

run, this effect will be limited because a single contribution is relatively

small compared to the already accrued benefits".

- New pension pay-out possibilities to be explored including lump sum payouts.

Previously not an issue but "risk decreases the investment horizon and might

adversely impact the amount of long and illiquid investments held"