Belfius Bank NV (CCBG), nationalized by the Belgian government, will be able to refocus on its core banking and insurance businesses as part of a restructuring plan approved by European Union regulators that will wind down most of Dexia SA. (DEXB)
The European Commission approved the “orderly resolution” of the Dexia group, the sale of its subsidiary Dexia Municipal Agency and the restructuring of Belfius, according to a statement by the EU regulator in Brussels today. Dexia shareholders last week voted to continue the company’s activities, approving a 5.5 billion-euro ($7.25 billion) capital increase by the Belgian and French governments and avoiding a default on 386.5 billion euros of debt. Belgium in 2011 bought the local consumer-banking unit, now called Belfius.
The EU approval allows Dexia to receive state guarantees of 85 billion euros and the recapitalization from France and Belgium. The bank, whose shares have lost almost all their value, reported a loss for the third quarter of 1.23 billion euros.
“The plan will allow the orderly resolution of the group,” EU Competition Commissioner Joaquin Almunia said in the statement. “The approved plan ensures that the continued market presence of some parts of the Dexia group is truly justified, without artificially keeping alive a failed business model, and that competition distortions resulting from the aid received are minimized.”
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