Stricken Dexia bank reports loss of 2.86 bn euros
The bank said that the cost of emergency funding from the European Central Bank, and of a temporary guarantee from the French, Belgian and Luxemburg states, amounted to nearly 1.0 billion euros ($1.32 billion).
The negative impact of asset sales was 1.60 billion euros.
In 2011, the bank had reported a loss of 11.63 billion euros.
Dexia bank specialises in funding local authorities but in Belgium it is also known for retail banking activities.
In 2012 the bank obtained approval from the European Commission to continue unwinding its activities over several decades rather than going into immediate liquidation.
The European Commission approved the principle of a new guarantee from the three states amounting to 85 billion euros, and a recapitalisation of 5.5 billion euros funded by France and Belgium.
MORE BUSINESS NEWS
Latest Photo Galleries on xinmsn
China's elderly population is expanding so quickly that children struggle to look after them, pushing them to do something unexpected in Chi... More China's elderly population is expanding so quickly that children struggle to look after them, pushing them to do something unexpected in Chinese society- move their parents into a nursing home. Duration: 02:07
Date 29 mins ago, Duration 2:06, Views 0