News / Europe

Belgium Buys Subsidiary of Troubled Dexia Bank

Chief Executive of Dexia Pierre Marian (L) and Dexia Chairman Jean-Luc Dehaene participate in a media conference at the Dexia bank headquarters in Brussels on Oct.10, 2011
Chief Executive of Dexia Pierre Marian (L) and Dexia Chairman Jean-Luc Dehaene participate in a media conference at the Dexia bank headquarters in Brussels on Oct.10, 2011
TEXT SIZE - +

Belgium decided Monday to buy a subsidiary of the financially troubled Dexia bank, the first victim of new European worries about the spread of Greece's debt crisis.

The Belgian government said it is paying $5.4 billion to buy the national subsidiary of Dexia. The French, Luxembourg and Belgian governments said they would provide an additional $121 billion in funding guarantees for the bank for up to 10 years.

The Belgian nationalization of Dexia came as members of Qatar's royal family said they would pay $1.4 billion to buy the bank's Luxembourg division. Dexia's board is negotiating with two French banks to resolve further financing difficulties for local authorities in France.

Dexia was hurt by holding too much governmental debt, especially from Greece, but also from Italy and struggling local governments in the United States. Other banks increasingly were reluctant to loan money to Dexia, worried that it would collapse and they would not be repaid. Belgian officials said the infusion of cash and loan guarantees insures that customers' deposits at Dexia are secure.

Meanwhile, Greece said Monday it has concluded talks with international creditors who have been reviewing the country's austerity budget measures. Greece needs their approval as it seeks release of a new round of financing from its $159 billion bailout from last year. Greek Finance Minister Evangelos Venizelos said he expects the $11 billion segment to be released before the country runs out of cash next month so it can avoid a default on its international obligations.

European leaders have been hard-pressed to stay a step ahead of the spreading debt contagion, which has worried investors across the globe.

On Sunday, French President Nicolas Sarkozy and German Chancellor Angela Merkel met in Berlin and promised to soon produce a "global, lasting and quick response" to the European debt crisis.

The two leaders declined to give any details of their plans, which Mrs. Merkel says are still a work in progress. But Mr. Sarkozy says they include adding new funding for banks faced with losses. They say the plan will be ready when France hosts a summit of leaders from 20 industrialized and developing economies early next month.

Ireland and Portugal also have needed bailouts, and there are fears Italy and Spain, with Europe's third and fourth largest economies, could be next.

In Slovakia, another of the 17 nations that use the common euro currency, lawmakers are struggling to reach agreement on whether to approve expansion of the eurozone's bailout fund to assist countries that need international aid.

On Monday, Slovakia Prime Minister Iveta Radicova threatened to resign if the measure is not approved in a vote set for Tuesday. Opponents say the country is too poor to guarantee a proposed $10 billion share of the proposed $589 billion fund.

All but Malta and Slovakia have approved the expanded fund.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid