Open

Coming up

Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

Search for AirAsia jet continues

Read more

WEB NEWS

The best viral Christmas ads of 2014

Read more

IN THE PAPERS

'Collective behaviour problem' because of snow in Alps

Read more

WEB NEWS

Providing Internet to rural areas

Read more

WEB NEWS

290 Syrian cultural sites damaged by civil war

Read more

FASHION

Fashion, what's happened in 2014

Read more

FRANCE IN FOCUS

France: 2014 in review

Read more

#THE 51%

South Africa: Taking a stand against child marriage

Read more

DEBATE

The Future of the Book

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)