Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

French counter-terror law slammed for weakening human rights

Read more

THE DEBATE

One-man rule? China's Xi Jinping consolidated grip on power

Read more

FOCUS

See you in court: Washington state sues Monsanto over chemical pollution

Read more

ENCORE!

Film show: 'Detroit', 'Kingsman 2', 'Beauty and the Dogs'

Read more

MIDDLE EAST MATTERS

Meeting Mohammad Alqadi, the Palestinian marathon man

Read more

BUSINESS DAILY

Deep divisions on display as NAFTA renegotiation talks end

Read more

IN THE PAPERS

Wildlife Photographer awards highlight effects of poaching, plastic pollution

Read more

EYE ON AFRICA

Four killed in Togo clashes after religious leader arrested

Read more

EYE ON AFRICA

Over 300 killed in Somalia's worst ever terror attack

Read more

Business

Brussels to probe Dexia rescue plan

Latest update : 2009-03-13

The European Commission has started an indepth investigation into the Franco-Belgian bank Dexia's rescue plan. EU regulators are concerned about the group's longterm viability, despite a 6.4 billion euro cash injection.

AFP - European Union regulators announced Friday that they had launched a probe into the rescue of Franco-Belgian bank Dexia to find out whether it will ensure the group's future.

"The European Commission has started an in­depth investigation under (EU) state aid rules to establish whether the restructuring plan for the Dexia group will restore the group's long­term viability," a statement said.

Late last year, France, Belgium and Luxembourg injected 6.4 billion euros into Dexia and pledged to guarantee its borrowings on the markets as its shares plunged during the worst credit crisis in generations.

The commission, the EU's top competition watchdog, said its announcement would give the parties a chance to comment on the measures which remain valid while the probe is underway.

"The commission is required to check that the large amount of aid provided to Dexia is accompanied by realistic projects to address the problems that led to the current situation," EU Competition Commissioner Neelie Kroes said.

"We cannot reach a favourable conclusion at this stage on the plans submitted to us. We therefore have to study them in depth."
 

Date created : 2009-03-13

COMMENT(S)