Belgium's federal government and its three main regions tentatively agreed late today to help come to the rescue of embattled Franco-Belgian bank Dexia, the government announced.
"During consultations between the federal government and the three regional governments (Wallonia, Flanders and Brussels), this afternoon, they confirmed their in-principle agreement to take part in a joint effort to boost Dexia group's funds,'' a statement said.
The statement, distributed by the office of Prime Minister Yves Leterme, made no mention of financial details.
But Belgian media said the support could amount to 7 billion euros ($12.3 billion).
Earlier today, Belgian Finance Minister Didier Reynders said the government was ready to step in to help Dexia, following the partial nationalisation of the beleaguered Dutch-Belgian banking and insurance giant Fortis.
After sliding nearly 33% in early trading in the Belgian capital, Dexia's shares plunged 28.5% to 7.20 euros on the Paris bourse.
AFP
