10 Oct 2011

Dexia to be dismantled

7:54 am on 10 October 2011

France, Belgium and Luxembourg have reached a deal to dismantle Dexia, the first bank to fall victim to the eurozone debt crisis.

A joint statement says the proposed solution will be submitted to the Dexia board.

French and Belgian prime ministers Francois Fillon and Yves Leterme met on Sunday to finalise the deal.

Dexia also had to be rescued in 2008 at the start of the global financial crisis.

France and Belgium, who were forced last week to step in and rescue Dexia, are in disagreement over the price for Dexia Bank Belgium, which Belgium now wants to buy.