Belfius loosens restrictions on investing in arms companies
Doing business with arms companies and investing in defence stocks was out of the question for years. But the state-owned bank Belfius has changed its mind, Het Nieuwsblad and L'Echo report on Tuesday.
After easing its credit policy for the defence sector in January, Belfius has now also adjusted its investment policy in the sector. The state-owned bank will no longer exclude investments in companies that generate more than 10 per cent of their turnover from conventional weapons.
"This commitment remains unchanged for companies based in a country that is not a member of NATO, but is being relaxed for companies from NATO member states in view of the changed geopolitical circumstances," Belfius spokesperson Ulrike Pommee told Het Nieuwsblad.
"This commitment (...) is being relaxed for companies from NATO member states in view of the changed geopolitical circumstances"
Even nuclear weapons are no longer off limits. "Investments in companies involved in the development, production or maintenance of nuclear weapons are also no longer excluded if they are based in a NATO member state," says Belfius. "Although nuclear weapons share certain characteristics with controversial weapons, they are considered by NATO to be essential for deterrence."
The bank reiterated that it is not changing its policy on investing in companies that produce controversial weapons such as landmines, cluster bombs or chemical and biological weapons.
Wholly state-owned
Investment in the defence sector has long been a red line for banks due to ethical and sustainability concerns. However, rising geopolitical tensions due to the war in Ukraine and recent actions by the new US administration appear to have led to a change in attitude.
Belfius's policy shift is also notable because it is wholly owned by the Belgian state. That could change soon: its CEO recently asked the federal government to sell a 20 per cent stake to a private investor. Prime minister Bart De Wever is considering doing so, to boost Belgium's defence fund.
© BELGA PHOTO ELISABETH CALLENS
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