Netherlands to Invest $13.4 Billion in ING

The move comes after the company's shares plummeted on rumors of a capital shortage.
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The Dutch government said Sunday it plans to invest 10 billion euros ($13.4 billion) in

ING Groep

(ING) - Get Report

to bolster the banking and insurance company's capital position, according to published media reports.

Dutch Finance Minister Wouter Bos said the government took the step to calm "market expectations" even though ING is "healthy," according to a report by the

Associated Press

.

Bos said the government will get an approximately 8.5% stake in the company but added that the investment is temporary, according to the report.

ING shares lost 24% Friday on the Amsterdam stock exchange on rumors of a capital shortage, the report said. The company's American depositary shares finished Friday's session in New York down $4.05, or 27.6%, at $10.65.

This article was written by a staff member of TheStreet.com.