The Commission has started an in-depth investigation under EC Treaty state aid rules to establish whether the restructuring plan for the Dexia group will restore the group's long-term viability.
The Commission has started an in-depth investigation under EC Treaty state aid rules to establish whether the restructuring plan for the Dexia group will restore the group's long-term viability.
The plan is accompanied by a capital injection of €6.4 billion, announced in September 2008, and maintenance of a guarantee of up to €150 billion granted jointly by Belgium, France and Luxembourg, which was earlier approved as rescue aid by a decision of 19 November 2008.
The Commission also authorised a guarantee for a portfolio of assets for a total value of $16.9 billion extended by the Belgian and French governments, a measure deemed indispensable for the sale of FSA, Dexia's US subsidiary, which is a prerequisite for the bank's return to viability.
In response to the acute difficulties threatening its survival, Belgium, France and Luxembourg granted state aid to rescue the bank.
Press release
© European Commission
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