Brussels, 07/01/2013 (Agence Europe) - As announced, on 28 December 2012, the European Commission authorised aid granted by Belgium, France and Luxemburg for the orderly resolution of the Dexia group, the sale of its subsidiary DMA (Dexia Municipal Agency) and the restructuring of Belfius (formerly Dexia Banque Belgique) (see EUROPE 10757). On condition that all the various commitments are respected, the Commission has authorised additional aid, consisting mainly of a final refinancing guarantee of €85 billion and a €5.5 billion bailout for Dexia SA and Dexia Crédit Local.
The orderly resolution plan submitted to the Commission includes the sale of many entities and businesses of the group as well as the winding down of the residual group. Belfius (formerly Dexia Bank Banque Belgique) was bought by the Belgian state and must sever connections with Dexia, focusing its business on insurance and financial services to the public sector and individuals and will not be allowed to increase its market share during the entire restructuring period. DMA (Dexia Municipal Agency) will be coupled with a new development bank in France, in which the French state, the Caisse des Dépôts et Consignations (CDC) and La Banque Postale will participate. DMA will have to limit its business to lending to areas of the economy where there is insufficient market (local authorities and state-owned hospitals). What is left of the group will be wound up and removed from the market, ceasing all business. Compeittion Commissioner Joaquim Almunia commented: “The plan… ensures that the continued market presence of some parts of the Dexia group is truly justified, without artificially keeping alive a failed business model, and that competition distortions resulting from the aid received are minimised”. (FG/transl.fl)