Published by Global Banking & Finance Review®
Posted on April 2, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleBNP Paribas shares dropped 2.6% following reports that Belgium may sell its 5.6% stake to fund defence spending, affecting the European banking index.
(Reuters) - Shares in BNP Paribas fell after French financial media Les Echos on Tuesday reported the Belgian government is considering selling its shares to set up a defence fund.
Shares in the French lender were down 2.6% around 0816 GMT, while the European Stoxx banking index shed 1.1%. Traders attributed BNP's sharper selloff to the report of the possible Belgian sale.
The stock had been boosted by a 32.5% rise since the beginning of the year, as of Tuesday's close, peaking at an 18-year high last week.
Through its financial arm, SFPIM, Belgium currently holds a 5.6% stake in the French lender, following the group's acquisition of Fortis Bank Belgium in 2009.
The Belgian government didn't immediately reply to a request for comment.
At current market value, the disposal of the 63.3 million shares would be valued at around 4.84 billion euros ($5.22 billion).
Belgium is looking for options to fund its planned increase in defence spending, in order to reach 2% of its gross domestic product this year, the minimum level agreed among NATO allies.
($1 = 0.9269 euros)
(Reporting by Alban Kacher, Jakob Van Calster and Charlotte Van Campenhout; Editing by Ros Russell)
The article discusses the decline in BNP Paribas shares following reports that Belgium may sell its stake to fund defence spending.
Belgium is considering selling its BNP Paribas stake to increase its defence spending to meet NATO requirements.
BNP Paribas shares fell 2.6%, and the European Stoxx banking index shed 1.1% following the news.
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