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Dexia capital plan intended to be its last -Belgian minister
November 8, 2012 / 9:22 AM / 5 years ago

Dexia capital plan intended to be its last -Belgian minister

BRUSSELS, Nov 8 (Reuters) - A Franco-Belgian plan to put more capital into Dexia is intended to be the last for the troubled lender, and while the cash injection should not affect Belgium’s deficit, it would add to the national debt, the Belgian finance minister said.

Steven Vanackere said the capital injection would be included in Belgium’s national debt but not count towards the country’s budget deficit targets, though the European statistics agency Eurostat would have the final say in this.

Vanackere said the recapitalisation should be the final one for the financial group but that nobody could be certain that this would be the case.

“Is it a total guarantee? People who give such a guarantee are unwise,” Vanackere said.

France and Belgium announced on Thursday they would pump 5.5 billion euros ($7 billion) into Dexia after it made another large loss and extensive writedowns.

Belgium will inject 2.92 billion euros, or 53 percent of the total, with France providing the remaining 2.59 billion, the Belgian and French ministries said in statements. (Reporting by Philip Blenkinsop and Robert-Jan Bartunek; editing by Rex Merrifield)

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