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Image header Agence Europe
Europe Daily Bulletin No. 10757
Contents Publication in full By article 29 / 36
ECONOMY - FINANCE - BUSINESS / (ae) state aid

Commission authorises wind-up of Dexia

Brussels, 20/12/2012 (Agence Europe) - On 20 December, European Competition Commissioner Joaquin Almunia said that he would be asking his fellow Commissioners to endorse a wind-up plan for Dexia. Despite aid received since 2008 (€10.9 billion in recapitalisation, €3.2 billion for assets, €135 billion in state guarantees and refinancing guarantees of €85 billion set out in a new decision), the bank will have to be totally wound up, explained Almunia. He announced resolution plans that will restrict taxpayer intervention to a minimum and avoid creating unfair competition. The plan was agreed upon by France, Belgium and le Luxembourg, Dexia's main shareholders. On 28 December, the Commission will end the current investigation into the bank (see EUROPE 10722) and the final batch of aid will be granted for the resolution. The Dexia Group will be wound up (€300 billion in assets); Belfius (formerly Dexia Bank Belgium) will sever all connections with Dexia and introduce its own restructuring plan to ensure its long-term viability; Dexia Municipal Agency (DMA) will form part of a French development bank established by Caisse des Dépôts et Consignations and Banque Postale to provide loans to local authorities. (FG/transl.fl)

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