Future of Dexia bank
A meeting on the future of Dexia was held in Brussels yesterday with French Prime Minister François Fillon, Belgian Prime Minister Yves Leterme, Belgian Finance Minister Didier Reynders and Luxembourg’s Finance Minister Luc Frieden.
The ministers welcome Dexia’s commitment to implementing an orderly restructuring plan, the principle of which was laid down today by the board of directors of Dexia SA and which envisages an acceleration of asset disposals by the group.
They welcome the three large-scale operations:
the plan for Dexia Municipal Agency to be supported by the Caisse des Dépôts et Consignations, and for the creation of a consortium made up of the Caisse des Dépôts et Consignations and La Banque Postale with a view to ensuring the financing activity of French local authorities;
the Belgian government’s offer to purchase Dexia Bank Belgium;
the start of exclusive negotiations with an international investor and the state of Luxembourg with a view to the disposal of Banque Internationale à Luxembourg.
In this framework, the governments have confirmed their intention to provide a funding guarantee to Dexia to a maximum total of €90 billion and with a duration of 10 years, relating to financing, bonds and securities with a maturity of up to 10 years. The states agreed to share this guarantee in the same proportions as in 2008: that is, 60.5% for Belgium, 36.5% for France and 3% for Luxembourg. This guarantee will be subject to remuneration in accordance with European requirements. It is testimony to the major efforts made by the Belgian, French and Luxembourg governments to ensure financial stability in the Euro Area.
The granting of this refinancing guarantee and the execution of these three operations will make it possible to strengthen the security of deposits, give the Dexia group room for manoeuvre in terms of liquidity and reduce its exposure.
The three governments confirmed that they will take every necessary measure to ensure the security of depositors and creditors.
They will pay particular attention to ensuring that the rights and interests of employees of the group and its subsidiaries are protected.
This new plan will be submitted to the European Commission and the relevant bodies so that it may be implemented as soon as possible.
Also see here an official statement from Minister of Foreign and European Affairs, Alain Juppé, in response to a question from France’s lower parliamentary body, the National Assembly.