France, Belgium reach deal on Dexia bank


France, Belgium and Luxembourg announced on Sunday that they had reached a deal to dismantle troubled bank Dexia, the first victim of the eurozone debt crisis.

"The proposed solution, which is the result of intensive consultations between all involved parties, will be submitted to the Dexia board, whose responsibility it is to approve the plan," a joint statement said without elaborating.

French and Belgian prime ministers, Francois Fillon and Yves Leterme, held a lunch-time meeting to finalise the deal to dismantle the bank, which also had to be rescued in 2008 at the start of the global financial crisis.

Leterme said he hoped that Dexia's board of directors which met at 3:00 pm (1300 GMT) would rapidly approve the deal.

He said a final solution to the Dexia crisis "depends on the board", Belga news agency reported.

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