Leterme discusses Dexia with Sarkozy

7th October 2008, Comments 0 comments

Prime Minister Leterme meets with French President Sarkozy Monday to discuss the banking crisis, specifically Dexia.

7 October 2008

BELGIUM -- On the Brussels Euronext stock exchange Dexia shares took a free fall on Monday. The share lost 20 percent of its value despite the French-Belgian bank's assurances over the weekend that it has limited exposure to a giant German lender being bailed out by Berlin.

Dexia has plunged 20percent into the red Tuesday.

Prime Minister Leterme met with French President Sarkozy in Paris Monday evening to discuss the financial crisis.

Before leaving for Paris PM Leterme met with the shareholders of Dexia. The prime minister stressed that Dexia was essentially a healthy bank.

Due to the banking crisis however, a liquidity problem arose. Coupled with the dropping share prices, there is reason for concern.

"We have taken steps for Fortis," said PM Leterme, "I hope we can also find a solution for Dexia."

An extra council of ministers meeting took place in Belgium Monday night.

Dexia was the second Belgian bank to receive a government and shareholder bailout when Belgium, France and Luxembourg said they would inject almost EUR 6.4 billion to keep it afloat.

A day earlier Belgium, the Netherlands and Luxembourg moved to save Fortis bank by injecting EUR 11.2 billion. On Monday BNP Paribas announced it would take a 75 percent stake in Fortis.

[flandersnews.be / Expatica]

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