Third of Dutch colleges and universities exposed to derivatives – report

The Dutch Ministry of Education, Culture and Science has reported that up to a third of colleges and universities in the country are using derivatives to hedge interest rate risk on loans, but that falling interest rates may have turned the value of such investments negative.

According to the Ministry’s statement, derivatives owned by training colleges are down in value by €-74m, while other college and university investment are down by €-216m. These are “virtual” values, but can still impact on the financial stability of the institutions and affect their relationships with banks, writes

Both the Education minister Jet Bussemaker and Ronald Plasterk, minister of the Interior and Kingdom Relations in the recently agreed Netherlands coalition government are understood to be pushing for future limits on the use of derivatives by institutions and bodies regulated by their departments.

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