Brussels, 31/10/2012 (Agence Europe) - France and Belgium are currently negotiating a financial rescue plan for Franco-Belgian bank Dexia, which will be presented to its board this week. In order to avoid winding up the bank in the short-term, it would need a financial bailout of between €5 and €7 billion, which the two countries are due to provide (they already provide a €90 billion guarantee for the bank, see EUROPE 10697) but are still haggling over who pays what. France wants Belgium to pay half, but Belgium wants to include its share of the bank's guarantee in its public debt, but if this is vetoed by the European Commission, then the money would have to come from its 2013 budget, which is already very tight. This is delaying resolution of the talks, which is unlikely to meet the 31 October deadline set by the European Commission for submission of a wind-up plan for Dexia in line with EU state aid rules. Commenting on the new cash injection for Dexia, the Commission said on 31 October that it wasn't surprised and a new state aid would have to be notified to the Commission by the two governments and be analysed as part of the overall bank resolution plan. The Commission said it was too soon to comment on how the new aid for Dexia would affect Belgium's finances. (FG/transl.fl)