Dexia bank sells Slovak branch

11th November 2010, Comments 0 comments

The French-Belgian bank Dexia has sold its Slovak branch to Slovak financial group Penta Investments in a move forced by the bank's deal with the European Commission, Penta said on Thursday.

"Penta Investments has agreed with Dexia's subsidiary Dexia Kommunalkredit Bank on the purchase of an 88.71-percent share," Penta spokesman Martin Danko told AFP.

"The purchase price won't be disclosed," he said, adding the transaction would take effect after approval from Slovakia's central bank and anti-monopoly authority.

Dexia has had to cut its activities by about 35 percent as part of a deal with the European Commission following a 2008 bailout worth 6.4 billion euros (8.8 billion dollars) by Belgium, France and Luxembourg.

"According to a deal with the European Commission from February 2010, Dexia had to sell the Slovak branch by October 13, 2012," Dexia Bank Slovakia spokesman Michal Furik said.

Penta, which already runs the private bank Privatbanka, said it would also try to buy the remaining share in Dexia Bank Slovakia, currently owned by an association of 329 Slovak towns and municipalities.

© 2010 AFP

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