Vestia has reached a settlement with Citibank about the derivatives debacle that almost cost the housing association years ago.

The bank pays more than 47 million euros to Vestia, without acknowledging any liability.

Vestia faced financial difficulties in 2012 due to major setbacks in derivatives, complex financial products intended to hedge interest rate risks.

At the time, other housing corporations had to step in to keep the then largest corporation in the Netherlands afloat.

Despite this, Vestia is still burdened by billions in debt and high interest charges.

Earlier this year it was announced that the corporation will have to split up to really get out of the financial troubles.

A contribution is also required from other corporations.

Vestia has been making efforts for years to recover the damage caused by the derivatives debacle from those who would have caused the damage directly or indirectly.

For example, settlements have already been reached with accountants and with ABN AMRO and Deutsche Bank.