The European Commission has given the green light to state guarantees worth 150 billion euros offered by France, Belgium and Luxembourg in October to the cash-strapped Franco-Belgian bank Dexia.
The European Commission said on Thursday it had approved a state-backed guarantee for Dexia from Belgium, Luxembourg and France to ensure the survival of the bank and reassure investors.
"The solution found for Dexia shows that cross-border cooperation is possible and can be approved quickly once we have all the relevant information," European Union Competition Commissioner Neelie Kroes said in a statement.
On Oct. 9 Belgium, France and Luxembourg agreed on a joint guarantee mechanism -- covered 60.5 percent by Belgium, 36.5 percent by France and 3 percent by Luxembourg -- to facilitate access to financing for Dexia, hit hard by
the financial crisis.
Date created : 2008-11-20