Dexia used up half of state borrowing guarantees

BRUSSELS Sat Feb 7, 2009 5:28am EST

Related Topics

BRUSSELS Feb 7 (Reuters) - Belgian-French financial services group Dexia (DEXI.BR) has used up about half of the 150 billion euro ($192.1 billion) state guarantees for its borrowings.

Dexia had used up guarantees totalling 75.35 billion euros by Thursday, according to a posting on the website of the Belgian national bank. (http:www.nbb.be/DOC/DQ/warandia/index.htm)

Dexia declined to comment on Saturday on the apparent speed at which they were being used up.

The guarantees from France, Belgium and Luxembourg for up to 150 billion euros of borrowing were supposed to last until October.

Belgium will provide guarantees of up to 90.75 billion euros, France 54.75 billion and Luxembourg 4.5 billion euros.

Dexia, the world's largest municipal lenders, received a 6.4 billion euro bailout by France, Belgium, Luxembourg and key shareholders in September and later won state guarantees for its new borrowing.

It has since announced restructuring plans designed to cut costs by 15 percent over three years after what it believes will be a 3 billion euro net loss in 2008. (Reporting by Philip Blenkinsop)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.