Rescue deal for Dexia

DexiaFrance, Belgium and Luxembourg have finalised a rescue deal for Dexia, which nearly collapsed last week.

Dexia, which has has been struggling owing to its large exposure to Greek and Italian debt, is receiving its second bailout in three years.

Belgium will acquire the shares of Dexia SA and its subsidiary Dexia Bank Belgium.

Meanwhile, Belgium, France and Luxembourg will provide funding of a maximum of €90 billion for Dexia SA and its subsidiary Dexia Crédit Local.

In a statement released today, Dexia says it has instructed its management to enter into exclusive negotiations with the Caisse des Dépôts et Consignations and La Banque Postale, which may see the conclusion of an agreement relating to the French local public finance sector.

Last week, Dexia said it had entered exclusive discussions with the group of international investors, including the Luxembourg state, interested in the acquisition of Dexia Banque Internationale à Luxembourg.

©2011 funds europe