ISSN 2330-717X

Belgium: PM Doesn’t Rule Out Nationalization Of Dexia Bank

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Belgium’s caretaker Prime Minister, Yves Leterme, has said that the crisis at Franco-Belgian banking group Dexia will not have to be paid by Belgian taxpayers or savers.

Leterme also noted that a nationalisation of the bank remained a possibility, Belgian media reported Wednesday.

He told journalists that Tuesday night’s emergency cabinet meeting agreed to grant the bank guarantees so that a “bad bank” could be created to house Dexia’s bad loans.

The prime minister also ruled out a bankruptcy, “even people with over 100, 000 euros on their account are safe.”

He, however, warned that shareholders of Dexia bank will lose money.

“I think it’s normal that when you are a shareholder of a company that is involved in risky operations that you can’t expect the taxpayer to compensate you for the damage,” he said.

On Monday, the rating agency Moody’s threatened to lower the rating of three major components of the Dexia Group and expressed concern about the bank’s liquidity position.

KUNA

KUNA

KUNA is the Kuwait News Agency

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