After a 14-hour meeting that began on Sunday and ended early on Monday morning, a deal has been struck to save the Franco-Belgian bank Dexia.
Its board has agreed to the nationalisation of its Belgian division and secured state guarantees.
Didier Reynders, the Belgian Finance Minister, said:
“We sent our offer of a 100 percent buy-up of Dexia Belgium shares and Dexia’s board confirmed to us that it accepts this offer.”
Belgium will pay four billion euros to buy Dexia Bank Belgium.
Belgian Prime Minister Yves Leterme said: “The taxpayer has not contributed too much, as the risk is managed and the cost of the operation is relative.”
Dexia has secured 90 billion euros worth of state guarantees for its borrowing over 10 years, 60.5 percent from Belgium, 36.5 from France and three percent from Luxembourg.
Dexia is the first bank to fall victim to the euro zone debt crisis.