France and Belgium have agreed to increase the temporary state guarantees for crisis-hit lender Dexia SA (DEXB) by an additional 10 billion euros ($12.5 billion), Le Soir reported, without citing the source of its information.
French Finance Minister Pierre Moscovici and his Belgian counterpart Steven Vanackere reached a deal earlier this week to raise the ceiling of the guarantees to 55 billion euros from 45 billion euros, the newspaper said.
The governments must notify this additional 10 billion euros in aid to the European Commission, Le Soir said. The commission, the 27-nation European Union’s executive arm, will assess whether these extra guarantees comply with the bloc’s rules on state support to companies.
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