Fortis, the Belgian-Dutch financial services company received a breather after three European governments came together to bail out the firm from collapsing into bankruptcy.

The governments of Netherlands, Belgium and Luxembourg have agreed to jointly raise 11.2 billion euros or $16.3 billion in order to save Fortis from sinking into insolvency. The bank has been incurring huge losses in the wake of a series of credit-related write-downs. Fortis is the largest European bank so far to have been pulled down by the market crisis affecting financial sectors across the globe.

Under the terms of the bail-out package, Fortis will have to give up the sections of ABN-Amro it acquired last year. On the other hand, each country will invest in equal-sized stakes in Fortis’ banking operations of that country. Belgium for instance will buy a 49% stake in the banking units owned by Fortis for 4.7 billion euros or $6.8 billion. likewise, Netherlands is buying a similar-sized stake in Fortis’ Dutch banking units for 4 billion euros or $5.8 billion while Luxembourg plans to extend a loan of 2.5 billion euros which can be converted to a 49% stake in Fortis’ banking business in Luxembourg.

One of the major losers in the multinational bail out of Fortis will be its largest shareholder, Ping An Insurance of China.