Eu commission approves financial injections for dexia group

eu commission approves financial injections for dexia group

The shareholders of the former municipal financier had already approved a capital increase of 5.5 billion euros before christmas. This will be jointly supported by the governments of paris and brussel. The group is now around 95 percent state-owned, with belgium accounting for 50 percent and france just under 45 percent. The rest is held by small shareholders.

The commission confirmed an earlier plan to break up dexia into several parts. Belfius, the former dexia bank belgium, will devote itself to its banking and insurance core business, said EU competition commissioner joaquin almunia. The french part DMA (dexia municipal agency) will be integrated into a new development bank in france.

"As provided for in our rules, the approved plan ensures that the market presence of some parts of the dexia group is fully justified without artificially keeping alive a failed business model(…)", declared the spanish commissioner. Almunia to ensure that state aid to financial institutions does not distort free competition in the EU.

Leave a Reply

Your email address will not be published. Required fields are marked *