Dexia: EU Commission Approves Guarantees For FSA Unit Assets

Dexia (DEXB.BT) said Friday that The European Commission has Friday approved the guarantee from the Belgian and French governments granted for the assets in the Financial Products portfolio of Financial Security Assurance (FSA).

Another milestone has therefore been passed in the process of disposing of the insurance activities of FSA to Assured Guaranty (AGO), the General Meeting of which is to be held on Monday Mar. 16.

The Commission also opened an inquiry into the restructuring plan which the Belgian, French and Luxembourg governments submitted to it at the end of Feb..

This inquiry is a classic procedure in community practice with regard to government aid. Within the context of an in-depth dialogue with the Commission, Dexia will assist the governments to detail and explain the measures necessary for the Group's recovery. There is already a resolute commitment to these measures, which inter alia involve long-term financing, the sale of FSA in the United States and KA in Austria and the mastery of costs.

Company Web site: www.dexia.com