Finance Minister not concerned after Dexia hiccup

The new Finance Minister Johan Van Overtveldt (N-VA) has reassured Belgian taxpayers about the Dexia bad bank. Mr Van Overtveldt said that the news that Dexia flunked an ECB stress test, will not have consequences for the Belgian state and its taxpayers. "We just have to continue the policies we had adopted towards Dexia so far."

Dexia failed the stress test carried out by the European Central Bank, but does not require fresh capital. This is good news for the Belgian state that owns 50 per cent of the bad bank. No fresh capital is needed because the bad bank is in fact a bank that is being dismantled anyway.

Mr Overtveldt said that there is no reason to change the current policies. "The stress tests show that the restructuring programme for Dexia works. Apparently, the ECB approves the way in which we have been handling things so far", he told the VRT.

Despite the bad bank failing the test, the government will not take any new measures, he added. "This is not necessary. We just have to continue along the same path that we have taken until today. And of course, we have to keep a close eye on things."