|2012-01-06 - 07:44:00 - DJ French Government Considers Nationalization Of Dexia- Report|
DJ French Government Considers Nationalization Of Dexia- Report
PARIS (Dow Jones)--The French Government is considering nationalizing what is left of the troubled Franco-Belgian bank Dexia SA (DEXB.BT), business daily Les Echos reports Friday without citing sources.
In October, French state-controlled financial institution Caisse des Depots de Consignations, or CDC, and La Banque Postale had agreed to join forces to launch a new bank at the end of the first half of 2012, taking over Dexia Credit Local and Dexia Munical Agency. The French and Belgian governments were to bring guarantees to this new bank.
However, according to the report, as the debt crisis deepens, these guarantees could prove very costly. "For Brussels, paradoxically nationalizing Dexia could be more expensive than bringing the guarantees elaborated in October," said a person close to the matter, cited by Les Echos.
A final agreement is yet to be reached, as nationalizations remain a politically sensitive issue, says the report.
Newspaper website: www.lesechos.fr
-By Paris Bureau, Dow Jones Newswires; 33-1-4017 1756
(END) Dow Jones Newswires
January 06, 2012 02:44 ET (07:44 GMT)
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