View: Belgium and France ask to extend Dexia's guarantees - paper | Reuters

Belgium and France ask to extend Dexia's guarantees - paper | Reuters

About Dexia, still not finalized

PARIS | Wed May 23, 2012 7:11am BST

PARIS May 23 (Reuters) - Belgium and France asked the European Commission on Monday to extend 45 billion euros ($57 billion) of secured state guarantees obtained by bailed-out lender Dexia late last year, business daily Les Echos reported, citing sources close to the matter.

EU executives should quickly come to a decision, the paper said, which could take place as soon as next week. The matter was becoming urgent, according to Les Echos, as the guarantees were due to mature on May 31.

"This extension would ... gain a bit of time, while Brussels (Belgian government) has not given its verdict on the final bailout plan of the Franco-Belgian bank, which rests on public guarantees of 90 billion euros," Les Echos said.

Discussions between Belgium and France have been delayed by the arrival of the new government in France after the election of Francois Hollande as president. ($1 = 0.7838 euro) (Reporting by Alice Cannet; Editing by Dan Lalor)

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