The Dutch government is working on a solution for troubled Dutch financial SNS Reaal NV (SR.AE) and considers nationalizing the bank as an option, Dutch daily De Telegraaf reports on Wednesday.

A solution for SNS Reaal is expected in the coming days, political sources tell the paper. Saving the bank could cost billions of euros, the sources say.

SNS Reaal is the fourth biggest Dutch financial, after Rabobank (RBK.YY), ING (INGA.AE) and ABN Amro (ABN.YY). It is considered as a system bank, which means the government will step in to save it if necessary. SNS Reaal got into trouble because of its EUR 8 billion property financing portfolio on which it has written down more than EUR2 billion since acquiring it in 2006.

Write to Robert van den Oever at robert.vandenoever@dowjones.com

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