EU executive approves tri-state aid for Dexia

EU executive approves tri-state aid for Dexia

Brussels: The European Commission said on Thursday it had approved a state-backed guarantee for Dexia from Belgium, Luxembourg and France to ensure the survival of the bank and reassure investors.

“The solution found for Dexia shows that cross-border cooperation is possible and can be approved quickly once we have all the relevant information," European Union Competition Commissioner Neelie Kroes said in a statement.

On 9 October Belgium, France and Luxembourg agreed on a joint guarantee mechanism - covered 60.5% by Belgium, 36.5% by France and 3% by Luxembourg - to facilitate access to financing for Dexia, hit hard by the financial crisis.

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