Bloomberg News

Dexia Recapitalization Plan a ‘Positive Step,’ EU Regulator Says

November 08, 2012

Plans by Belgium and France for a 5.5 billion-euro ($7 billion) recapitalization of Dexia SA (DEXB) are a “positive step,” European Union regulators said.

“This agreement between Belgium and France is a positive step that should help to move forward towards a solution on the three topics that we are currently discussing in parallel,” Antoine Colombani, a spokesman for the European commission, said in an e-mail.

The three issues are “the orderly resolution of the Dexia group, in particular the entity Dexia Credit Local, the restructuring of Belfius and the new bank that France wishes to set up for the financing of local government,” he said.

Belgium will pay about 2.9 billion euros of the capital increase and France will cover the remaining 47 percent, or about 2.59 billion euros, the Belgian and French finance ministries said today in separate statements. The operation will be “neutral” for Belgium’s budget, Finance Minister Steven Vanackere said.

To contact the reporter on this story: Peter Chapman in Brussels at pchapman10@bloomberg.net

To contact the editor responsible for this story: Jones Hayden at jhayden1@bloomberg.net


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