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Dexia Stops Funding for Some French Customers, De Tijd Says

Dexia SA, the French-Belgian lender that’s being broken up, has stopped funding some 120 large customers in France, most of them local governments, De Tijd reported yesterday, citing customers and a company spokesman.

Dexia has told customers they no longer have drawing rights for existing lines of credit of up to 1.6 billion euros, De Tijd said. Benoit Gausseron, a spokesman for the company, said it can no longer provide new loans under restructuring overseen by the European Commission.

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