Dexia confirms accord with Commission

The president of the Dexia board of directors, Jean-Luc Dehaene, is pleased with the accord reached with the European Commission. "We are pleased with the accord which enables us to carry on with the restructure plan that we now have in place," says Jean-Luc Dehaene. By 2014 Dexia should be one third smaller than it now is.

The European Commission is demanding that Dexia scale back. By 2014 Dexia should be a third the size it now is. The president of the Dexia board of directors points out that Dexia is already restructuring in that direction.

The European Commission is demanding that Dexia scale back because during the economic crisis the bank received €6.4 billion in government aid and a guaranteed loan of €150 billion. According to the European Commission this gave Dexia a considerable competitive edge.

"It is a balanced accord," says Jean-Luc Dehaene, who is a Flemish Christian democrat EuroMP for Belgium. "Europe is directing us towards becoming a more modest ('normal')sized bank and this is the direction we want to go too. Thanks to this accord Dexia can move forward as one of the most important banks in this country," says Mr Dehaene.

Other stipulations and conditions are also attached to the deal. Dexia may not pay out any dividends for 2009 and 2010. From 30 June of this year the bank may no longer apply for more state aid.