DEXIA : EU Reviews Dexia Guarantee Increase Following Aid Extension
06/06/2012| 06:49am US/Eastern
The European Commission is reviewing a plan by France, Belgium and Luxembourg to increase the guarantees for troubled bank Dexia SA (DEXB.BT) to 55 billion euros ($68.6 billion) from EUR45 billion, a spokesman for the bloc's antitrust arm said Wednesday.
"I can confirm to you that we have received this request, which we will study," said Antoine Colombani, spokesman for European Union competition commissioner Joaquin Almunia, who reviews state aid in the 27-nation bloc.
Last week, the commission approved the extension for four months of the EUR45 billion guarantee granted to the bank in December 2011. However, it also made clear this was to give the bank more time to submit a fresh business plan.
In a press release, the Commission said it would "extend its in-depth investigation" into Dexia and its subsidiary, Dexia Credit Local, "in order to examine formally the orderly resolution plan" for Dexia.
The French and Belgian finance ministries didn't immediately return calls seeking comment.
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