BRUSSELS: Dexia Bank Belgium, a unit of stricken Franco-Belgian financial group Dexia, which was nationalised by Belgium for 4 billion euros ($5.3 billion), has an exposure of 56 billion euros to the group, the bank said.
The largest part of the exposure is part of financing for Dexia Credit Local, the unit that gives out loans to local authorities in France, of which 22 billion are unsecured.
"There is 56 billion of outstanding financing, of which 22 billion is uncovered, but the aim is to reduce this amount as soon as possible," said Moniek Delvou, a spokeswoman for Dexia Bank Belgium.
A sum of 34 billion is guaranteed by securities, Delvou said.
"Dexia Bank Belgium, and that was an arrangement within the group, has always acted as a liquidity centre. It was its duty to fund the other entities," Delvou said.
The unit's CEO Jos Clijsters had informed a special committee of the Belgian parliament of the bank's financial situtation on Monday.
Talks between Belgium, France and Luxembourg to finalise a deal struck in October over 90 billion euros of state guarantees for Dexia are continuing.
A French Finance Ministry source said last week an interim agreement to guarantee Dexia's financing would be signed "within days".
Comments
Comments are closed for this article.