–Market Conditions May Force Dexia Recapitalization
FRANKFURT (MNI) – Europe’s economy is clearly evolving in a
negative direction, European Central Bank Governing Council member Luc
Coene said in excerpts of an interview published Friday by Belgian daily
L’Echo.
“It is clear that something is happening in the world economy, as
well as in the European economy, which is clearly evolving in a negative
direction,” Coene told the paper.
Coene, who heads the Belgian National Bank, also told the paper
that Belgian bank Dexia may need to be recapitalized if it cannot repay
its debts.
“If market conditions do not allow Dexia to reduce its losses, a
recapitalization would certainly be necessary, and relatively quickly,”
Coene said.
Coene said if market conditions persist that there is a risk this
recapitalization would have to take place in the short term, rather than
the long-term.
— Frankfurt bureau: +49 69 720 142; email: ccermak@marketnews.com —
[TOPICS: M$X$$$,M$$EC$,MGX$$$,MT$$$$,M$$CR$]