Troubled bank Dexia gets €45bn financing lifeline

Franco-Belgian bank Dexia has secured temporary financing guarantees of €45bn from Belgium, France and Luxembourg, according to reports.

Dexia said a draft temporary guarantee agreement was submitted to its board of directors and the European Commission today, Reuters reports. The lifeline will cover Dexia's funding needs until May next year. Dexia shares gained 7.37% by mid-morning on the news, climbing to €0.379 per share. According to KBC Securities, the agreement gave Dexia temporary relief, although it is still asking the ECB for a considerable amount of funds and the guarantee fee is a potential negative. Dexia received a €90bn rescue package from Belgium, France and Luxembourg in Octoberto cover its borrow...