Belgian government calls emergency Dexia talks: minister

4th October 2011, Comments 0 comments

The Belgian government will hold emergency talks late Tuesday on the fate of cross-border bank Dexia, the country's Finance Minister Didier Reynders said.

"As early as tonight the Belgian government will meet to assess" the situation of the bank, whose shares crashed by nearly a quarter on Tuesday morning after an emergency board meeting raised the possibility it may be broken up and unions talked of its sale.

Earlier in Luxembourg, French Finance Minister Francois Baroin said his government, like that of Belgium, "will answer present" if cross-border bank Dexia needs a second bailout "like in 2008."

"The Belgian and French states will answer present like in 2008," when a US mortgage market crash triggered a global credit crunch, Baroin said on the sidelines of talks among European Union finance ministers.

© 2011 AFP

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