Dexia : Dexia : City of Detroit - limited impact on Dexia's 2nd quarter 2013 consolidated accounts

 Dexia : Dexia : City of Detroit - limited impact on Dexia's 2nd quarter 2013
                            consolidated accounts

Regulated information - Brussels, Paris, 22 July 2013 - 7:45 am

City of  Detroit: limited  impact on  Dexia's 2^nd  quarter 2013  consolidated 

Following the  filing for  Chapter  9 bankruptcy  protection  of the  city  of 
Detroit introduced on Thursday July 18th 2013, Dexia precises that the group's
exposure falling  under the  debt restructuring  measures amounts  to USD  305 

USD 75 million are covered by a performing reinsurer. The remaining amount  is 
insured by  an insurer  involved  in a  restructuring procedure.  The  group's 
exposure has been provisioned  over time by  Dexia such that  it will take  an 
additional adjustment of EUR 59  million in its accounts  as at 30 June  2013. 
Given the expected recovery  rate, the amount of  the provision equals 48%  of 
the total unpaid principal balance of the Detroit exposure as at 30 June 2013.

Dexia also has USD 148 million  of additional exposure to municipal  entities, 
related to  the City  of Detroit  which however  do not  fall under  the  debt 
restructuring within the frame of the Chapter 9 filing.

The global provision on  the City of  Detroit is part of  the overall cost  of 
risk as  budgeted pro  rata temporis  by the  group within  the scope  of  its 
orderly resolution plan validated by the European commission end of 2012.

Press Release


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Source: Dexia via Thomson Reuters ONE
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