State aid: Commission approves prolongation of Belgian and French state guarantees on Dexia’s senior debt beyond 2021
The European Commission has approved, under EU State aid rules, the prolongation of Belgian and French State guarantees on the senior debt of Dexia, which is in orderly wind-down. In 2012, Belgium, France and Luxembourg provided state support for the orderly wind-down of Dexia. The state support was approved by the Commission under EU State aid rules on the basis of a wind-down plan that included a capital increase, as well as the possibility of providing State guarantees on Dexia’s senior debt until 31 December 2021. In June 2019, Belgium and France notified to the Commission their plan to extend the possibility to provide State guarantees on Dexia’s senior debt until 31 December 2031, to continue winding-down the group. Based on the notified plan, the remuneration fees to be paid by Dexia to the Belgian and French States for the prolonged State guarantees (after 2021) will fully ensure that burden-sharing requirements for subordinated creditors are met. On this basis, the Commission has approved the prolongation of Dexia’s senior debt State guarantees beyond 2021 under EU State aid rules. More information will be available on the Commission’s competition website, in the public case register, under the case numbers SA.53554 and SA.53592.