Today KBC Group NV (KBC), in connection with its 2009 first quarter earnings, announced that Belgium has agreed to guarantee up to €14.4 billion of counterparty risk insured by MBIA and €5.5 billion of KBC's super-senior collateralized debt obligation portfolio, following significant impairment write-downs mainly associated with the possibility that MBIA will default and that KBC "[w]ill have to bear the cost of any insured losses itself." Under the €20 billion guarantee scheme, the risks will be covered in three tranches. KBC will cover the first €3.2 billion in losses, for which KBC has already provided. For the next €2 billion in losses, KBC either can absorb those losses without government assistance or may request the Belgian government cover up to 90% of the losses "[b]y means of a capital increase." Any remaining losses will be covered up to 90% by the Belgian government in cash. KBC will pay a €1.2 billion upfront guarantee premium, plus an additional €30 million per quarter for six years.