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Dexia gets bail out

 

Dexia gets bail out

 

Oct 10,  8:55 PM
France, Belgium and Luxembourg are to bail out the troubled bank Dexia, following fears it could go bankrupt. The Belgian government will buy the bank's division in Belgium for 4bn euros, while a Qatari investment group was ready to buy the bank's Luxembourg unit. Trading in Dexia's shares, which had been suspended, resumed this afternoon. The price immediately fell 36% before recovering slightly. The bailout plan for Dexia came after German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed Europe's crisis-hit banks needed to be recapitalised. Dexia also secured state guarantees of up to 90bn euros to secure borrowing over the next 10 years. Belgium will provide 60.5% of these guarantees, France 36.5% and Luxembourg 3%.

 



Monday , 10   October , 2011