Brussels, 08/02/2010 (Agence Europe) - The Dexia Board of Directors unanimously voted in favour of the banks restructuring plan on which the Belgian, French and Luxembourg states, as well is that European Commission had given their approval. In return for the subsidies that it will receive from three countries to overcome the crisis - public recapitalisation of €6.4 billion and a state guarantee of up to €150 billion (to be taken down to €100 billion later) - Dexia will have to reduce its spread of assets.
The agreement was reached on Friday and is expected to be ratified by the new European Commission in the next few weeks. It stipulates that: (1) Dexia reduce its assets spread by 35% between 2008 and 2014, from €650 to €430 billion, and that its dependency on short-term financing be reduced to represent around 10% of total debt by 2014; (2) Dexia sell its different funding activities to local authorities in other countries and not just Belgium, France and Luxembourg. The bank will also have to relinquish its stakes of 70% in Dexia Crediop (Italy) and of 85,5% in Dexia Banka Slovensko by 31 October 2012, as well as its stake of 60% in Dexia Sabadell by 31 December 2013. Dexia is also is also committed to selling off AdInfo (51% stake) by 31 October 2010 as well as its insurance activities in Turkey by 31 October 2012; (3) Dexia will not be able to acquire any financial institution before the end of 2011; (4) Dexia will cut its costs by 15% by the end of 2011 (in comparison to the costs it had at the end of 2008); (5) possible dividends would be paid in shares. (O.L./transl.fl)