Dutch Copy Fannie Mae Seen by BlackRock as Taxpayer Risk

The Dutch, whose economy is suffering from a housing-market collapse made worse by tighter regulation, plan to issue government-backed mortgage bonds to loosen lending and ensure the country avoids a repeat of the 2008 crisis when credit dried up.

Banks, pension funds and the Dutch government agreed last month to establish a finance company that will buy some of the highest-rated securitized mortgages from lenders with funding from government-guaranteed home-loan bonds. The program would issue at least 50 billion euros ($69 billion) within five years to reduce lenders’ reliance on capital markets for funding.