Troubled Dexia bank to be nationalised
TROUBLED Franco-Belgian bank Dexia is to have part of its banking division nationalised.
It has secured Belgian state guarantees in a move that could force other European Government to strengthen their banks.
Belgium will pay €4b to buy Dexia Bank Belgium, a Belgian division.
It has deposits of €80bn from four million customers and over 6,000 staff.
The company has a subsidiary called Dexia Imvestments which employs 40 people in Ireland.
Dexia marks the first bank to fall in the two year debt crisis which struck after the financial crisis hit in 2008.
"We found an agreement on the fair division of the costs related to the management of the 'rest bank'," said Belgian prime minister Yves Leterme.
As the debt crisis worsened, Dexia found long-term lending had dried up and it is also exposed to Greek debt.