BRUSSELS - THE European Commission said on Thursday it had approved a state-backed guarantee for Dexia from Belgium, Luxembourg and France to ensure the survival of the bank and reassure investors.
'The solution found for Dexia shows that cross-border cooperation is possible and can be approved quickly once we have all the relevant information,' European Union Competition Commissioner Neelie Kroes said in a statement.
On Oct 9 Belgium, France and Luxembourg agreed on a joint guarantee mechanism - covered 60.5 per cent by Belgium, 36.5 per cent by France and 3 per cent by Luxembourg - to facilitate access to financing for Dexia, hit hard by the financial crisis. -- THOMSON REUTERS
