Brussels, 06/06/2012 (Agence Europe) - On Wednesday 6 June 2012, the European Commission said that it had received an official request from France, Belgium and Luxembourg to increase the temporary guarantees to cover Dexia's finance needs from € 45 billion to €55 bn until it is wound up. The Commission will now examine whether the extension is justified (in the light of the bank's finances and the aid it has already been granted).
The request comes at a time when Dexia has virtually exhausted the €45 bn guarantee that expired on 31 May 2012 and that the Commission decided a few days ago to allow to continue until 30 September 2012 to prevent Dexia going under and dragging a section of the economy with it (see EUROPE 10625). A Commission spokesperson said the Commission had serious doubts whether Dexia's wind-up plan complied with EU state aid rules. The three countries in question agreed in the autumn of last year to provide a €90 bn bailout to Dexia over ten years in order to allow the bank time for a properly planned wind-down, Belgium providing 60.5% of this, France 36.5% and Luxembourg 3%. A further €45 bn has been provided to enable Dexia to borrow from the money markets. (FG/transl.fl)