The Dutch banking group ABN Amro said today that it would make a provision worth 110 million euros in the fourth quarter this year if the US energy trading giant Enron declared bankruptcy.
The figure does not represent all of the bank's exposure in Enron, according to an ABN Amro spokesman, who did not disclose the full amount. But analysts have estimated the bank's exposure at between 200 and 300 million euros.
British bank Abbey National this morning revealed that it had lent £115m sterling to Enron. It will make a provision of up to £95m for the Enron exposure in the second half of its financial year.
Shares in Barclays and Royal Bank of Scotland also fell in London this morning as both are thought to have some exposure to Enron.
National Australia Bank, which owns National Irish Bank, also said its exposure to Enron was $200m, but said this represented less than 0.1% of its international loan portfolio.
Enron is likely to file for bankruptcy early next week, according to a source close to the company.
The company's collapse would be the largest corporate collapse in US history, with the company declaring assets of over $60 billion at the end of September.
Creditors, traders, and banks face losses of billions of dollars after a rescue takeover by rival energy group Dynergy collapsed on Wednesday.
Yesterday Enron's European arm filed for protection from creditors and lawyers at the company are believed to be preparing for similar proceedings in a US court next week.
