Franco-Belgian bank Dexia has secured temporary financing guarantees of €45bn from Belgium, France and Luxembourg, according to reports.
Dexia, the Franco-Belgian bank, has agreed to nationalise its Belgian banking division and secure state guarantees as part of a multi-billion euro rescue plan.
With the sovereign debt crisis in full maelstrom and the bailout of Dexia bank unlikely to be the last of its kind, the threat of inflation would seem to be a long way from many people's minds.
Managers fear France could be the next European nation in line for a downgrade as it steps in to support beleaguered bank Dexia.