News

French-Belgian financial institution Dexia will receive €6.4bn capital from Belgium, France, Luxembourg as well as key shareholders. This move is aimed at boost its capital and restore confidence in the institution. The Belgian government and shareholders will invest €3bn while France will contribute €1bn and French state-controlled Caisse des Dépôts will put €2bn. In addition, the Luxembourg government agreed to inject €376m.



Shares in Dexia fell 30 percent on Monday 29 September amid increase uncertainty in financial markets following US Congress refusal to adopt a $700bn rescue plan for financial institutions.



Chief executive, Axel Miller, and chairman, Pierre Richard, will step down as soon as replacements are found.



Dexia is the latest European financial institution to need a bailout from government after Fortis (Belgium), Hypo Real (Germany), Bradford & Bingley's (UK) and Glitnir (Iceland).



To see press release by UNI Finance affiliate SETCa (Belgium), go to:

http://www.setca.org/News/Pages/Dexia%20quid.aspx (in French)



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