Troubled Dexia loses 10 bn euros: chief

9th November 2011, Comments 0 comments

Troubled Franco-Belgian banking group Dexia suffered a loss of about 10 billion euros ($13.6 billion) in the first nine months of 2011, bank chief Pierre Mariani said Wednesday.

The group, bailed out first in 2008 as the global financial crisis broke and now being broken up to avoid wider problems, will not publish official results for the third quarter, he said.

The loss estimate includes the sale of Dexia Bank Belgium to the Belgian government even though it did not take effect until October 20, Mariani said in a conference call.

Belgium, France and Luxembourg decided in October to dismantle Dexia with Belgium agreeing to pay 4.0 billion euros to nationalise its domestic retail unit.

The three governments guaranteed the bank to the amount of 90 billion euros, with 60.5 percent for Belgium, 36.5 percent for France and 3.0 percent for Luxembourg.

Dexia registered a loss of 4.03 billion euros in the first half of the year.

The bank then booked a 4.06 billion euro loss on the sale of the Belgian branches and a 2.3 billion euro loss on its holdings of Greek sovereign debt.

© 2011 AFP

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