Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Erdogan to rid Turkish institutions of ‘separatist cancer’ after coup attempt

Read more

ENCORE!

The best of summer music festivals in France

Read more

FRANCE IN FOCUS

Going for gold: French athletes train for Rio Olympics

Read more

#TECH 24

Digital beauty

Read more

FOCUS

Women doctors in Pakistan challenge the status quo

Read more

BUSINESS DAILY

Trump hopes to reset America's trade relations

Read more

IN THE PAPERS

'Donald Trump's speech was just another scam'

Read more

IN THE PAPERS

Cazeneuve at the heart of Nice security controversy

Read more

EYE ON AFRICA

South Africa: Prosecutors seek longer sentence for Oscar Pistorius

Read more

Business

EU okays nationalisation of Dexia's Belgian arm

Text by News Wires

Latest update : 2011-10-17

The European Commission on Monday gave temporary approval to Belgium's nationalisation of Dexia's Belgian unit, as part of a rescue plan. The dismantled Franco-Belgian bank is the first victim of the eurozone's financial crisis.

AFP - European competition authorities on Monday gave temporary approval to Belgium's nationalisation of Dexia's Belgian unit under a rescue plan of the Franco-Belgian banking group.

The European Commission gave the Belgian government six months to provide a new restructuring plan for Dexia Bank Belgium, saying it was too soon to determine if the 4.0-billion-euro acquisition complies with EU state aid rules.

"The Commission acknowledges that the measure is necessary to preserve financial stability," the European Union's executive arm said in a statement.

But the commission said it launched an in-depth investigation to "assess whether the acquisition price contains state aid, and if so, whether the aid complies with EU rules for restructuring aid."

France, Belgium and Luxembourg decided last week to dismantle Dexia, the first bank to succumb to Europe's debt crisis.

The three governments agreed to guarantee the bank to the amount of 90 billion euros, with 60.5 percent for Belgium, 36.5 percent for France and 3.0 percent for Luxembourg.

While Belgium is nationalising its unit, France has decided to create a new bank to finance local authorities. The Luxembourg unit is being sold to Qatari investors.

Date created : 2011-10-17

  • BELGIUM

    Brussels to take full control of Dexia's Belgian arm

    Read more

  • EUROZONE

    Dexia to sell Luxembourg arm as trading is suspended

    Read more

  • BANKING

    France races to reassure investors on Dexia slide

    Read more

COMMENT(S)