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Belgium to Take 100% Control of Dexia Bank’s Local Arm
October 10, 2011

Belgium will take total control of Dexia Bank Belgium, the troubled Franco-Belgian bank Belgium will take total control of Dexia Bank Belgium, the troubled Franco-Belgian bank's local arm. (Agency Photo)
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Brussels. Belgium will take total control of the local arm of the troubled Franco-Belgian bank Dexia, Prime Minister Yves Leterme said Monday after a cabinet meeting in Brussels.

Leterme said the move would “make secure” the retail bank inside Belgium and free it from “any risks resulting from the environment within parent body Dexia SA.”

Finance Minister Didier Reynders said his government had offered four billion euros for Dexia Bank Belgium, an amount he said was “reasonable.”

He told a news conference: “With this agreement the wish of the Belgian government is not to remain indefinitely in [control of] its bank nor to leave rapidly but to ensure its continuity.”

Reynders said Belgium would guarantee the financing of the future “bad bank” that would remain after the dismantling of the Dexia group, to the tune of 60 percent, or 54 billion euros.

The guarantee by the three states — France, Belgium and Luxembourg — where Dexia is present amounted to 90 billion euros, he said, as against 150 billion when the bank was saved in 2008.

Agence France-Presse