Brussels, 22/12/2011 (Agence Europe) - On Wednesday 21 December, the European Commission authorised a temporary guarantee on the refinancing of Dexia SA and its subsidiary Dexia Crédit Local (DCL) for €45 billion by France, Belgium and Luxembourg.
The Commission had opened a far-reaching investigation and will take the definitive decision on this guarantee as part of its evaluation of Dexia's restructuring plan for which the different countries involved will have to provide it with a liquidation plan within three months from this Wednesday.
The Commission considers that this temporary guarantee, extended by Belgium (60.5%), France (36.5%) and Luxembourg (3%), “is necessary in order to preserve the financial stability of the member states concerned, given the systemic importance of Dexia SA”. It has doubts at this stage, however, as to whether the temporary guarantee measure is compatible with the single market, especially since the new aid comes in addition to the aid already approved as part of the restructuring plan authorised by the Commission on 26 February 2010. The Commission also explains that the temporary guarantees for the refinancing of Dexia SA and DCL mark a significant change compared with the conditions on which the restructuring plan and the associated commitments and conditions were approved by the Commission in 2010. A “re-examination of the restructuring of Dexia, with the submission of a new restructuring or liquidation plan, is therefore needed”. The Commission will reassess the temporary refinancing guarantee as a structural measure as part of its examination of the restructuring plan or liquidation plan. (LC/transl.fl)