Dexia asks Brussels to extend its guarantee -paper
PARIS, Sept 11 |
PARIS, Sept 11 (Reuters) - Franco-Belgian lender Dexia plans to ask Brussels for a four-month extension to its temporary state guarantee worth 55 billion euros ($70.32 billion) until January, Les Echos newspaper reported on Tuesday without identifying its sources.
The bank had until the end of the month to use the public guarantee but needs more time to wrap up its restructuring package which will be submitted for approval to the European Commission, the paper said.
European Commissioner Joaquin Almunia said on Saturday that he favoured extending a temporary authorisation for state aid for the stricken bank beyond a Sept.30. deadline.
"But the most important thing is to advance on a final, structural solution about the future of the Dexia group," he said.
Last year, the European Commission had approved a cross-border rescue plan which involved a financing guarantee totalling 90 billion euros, 60.5 percent of which was provided by Belgium, 36.5 percent by France and 3 percent by Luxembourg.
In June, the bank's refinancing guarantee had been increased by 10 billion to 55 billion euros. ($1=0.7821 euros) (Reporting by Alice Cannet; Editing by Mike Nesbit)
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