Dexia Renegotiations Must Await French Vote, Di Rupo Tells Tijd

Belgian Prime Minister Elio Di Rupo said the country must wait until after France’s presidential elections to renegotiate its share of guarantees given as part of stricken lender Dexia SA’s rescue, De Tijd reported.

“At this moment it is not realistic to negotiate with the French,” he said in an interview with De Tijd. “We will have to wait until after the second round of French elections to re-contact.”

Dexia, based in Brussels and Paris, is being broken up after last year losing access to short-term funding. Belgian Finance Minister Steven Vanackere favors a deal on the guarantees with France to reduce his country’s exposure to Dexia risks, De Tijd said.

Di Rupo also stressed the importance of a decision on who should run Dexia. Top executives should be people “in which the government has the fullest confidence,” he told the newspaper, citing the amount of tax money at stake.

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