(MENAFN - Kuwait News Agency (KUNA)) The European Commission Friday announced that it has approved a 90 billion euro bailout by Belgium, France and Luxembourg for the winding up of the Dexia banking group, sale of its subsidiary DMA (Dexia Municipal Agency) and the restructuring of Belfius (formerly Dexia Bank Belgium).
The EU's executive body in a statement concluded that "provided all commitments concerning the orderly resolution of the group are compiled with, ...these transactions are in line with EU state aid rules.
" Joaquin Almunia, EU Commissioner for competition policy, said: "I am happy to finally be in a position to approve the resolution plan of Dexia, which Belgium, France and Luxemburg have drawn up jointly."
He noted that Belfius, now owned by Belgian state, will focus on its core banking and insurance business while Dexia Municipal Agency will be turned into a new development bank in France.
France, Belgium, and Luxembourg decided to wind up Dexia in 2011 after it sought its second bailout due to the financial crisis.