Belgium, France, and Luxembourg are already guarantors to the tune of 45 billion Euro. However, this was only meant to be a transitional arrangement to allow Dexia to survive during the coming months. This has now been extended for an additional 4 months.
France and Luxemburg had already expressed a desire to increase the amount that they would be prepared to stand to 55 billion.
Initially Belgium was not prepared to play ball. However, now the French have agreed to restructure their part of Dexia by the end of the summer, the Belgium government has now agreed to increase the guarantee.
Mr Vanackere told VRT radio that it is his job to be cautious “For as long as one of the partners is not delivering what has been agreed.”
However, now the French have agreed to restructure at their end, there is no reason not to increase the amount guaranteed. The European Commission has been informed of the three countries intentions, but has yet to give its approval.
The Finance Minister expects this to be given by the end of the week. Belgium will stand 60.5% of the sum stood by the three countries as a guarantee.