Extra €10bn agreed to help Dexia

France, Belgium and Luxembourg, which own Dexia, the lender that was being broken up, agreed to boost state guarantees to the ailing bank by €10bn to €55bn, it was disclosed on the 6 June 2012.

The European Commission 'temporarily approved' the €10bn increase in guarantees 'in order to preserve financial stability'. It said would take a final view on whether the move was compatible with EU state aid rules when it had assessed the plan to dismember the bank.

ESO: Background information: State aid: Commission extends in-depth investigation into the orderly resolution plan of the Dexia group and temporarily approves prolongation of the refinancing guarantee to Dexia SA and DCL http://www.europeansources.info/record/press-release-state-aid-commission-extends-in-depth-investigation-into-the-orderly-resolution-plan-of-the-dexia-group-and-temporarily-approves-prolongation-of-the-refinancing-guarantee-to-dexia-sa-a/

ESO: Background information: Dexia to be dismantled over weekend http://www.europeansources.info/record/dexia-to-be-dismantled-over-weekend/

Wikipedia: Dexia http://en.wikipedia.org/wiki/Dexia

Reuters, 6.6.12: Dexia squeezes more aid from its rescuers http://uk.reuters.com/article/2012/06/06/uk-dexia-funding-guarantees-idUKBRE8550LZ20120606

France24, 6.6.12: Ten-billion-euro rise in clean-up costs for bust bank Dexia http://www.france24.com/en/20120606-ten-billion-euro-rise-clean-costs-bust-bank-dexia

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