Dexia bank needs EUR 5-6bn recapitalisation: reports

(BRUSSELS) - The Franco-Belgian bank Dexia will need some "five-to-six billion euros" in recapitalisation in the next few weeks, Belgian newspapers reported on Tuesday.

French-language daily Le Soir via Sudinfo.be cited an un-named Belgian government minister as telling it that out of "a total sum of "five to six billion, Belgium's share would be 2.5 or 3.0 billion."

A formula for dividing the respective governments' shares has still to be agreed.

Dexia publishes quarterly results November 8.

The Belgian authorities had previously mentioned a figure of five to 10 billion euros.

Dexia began a programme to dismantle itself in late 2011 after needing a second bailout since the global economic crisis began.

On September 26 the European Commission agreed to the extension until January 31 of the temporary 55 billion euros in guarantees from France, Luxembourg and Belgium to allow the orderly dismantlement of the bank.

Belgium, which accounts for 60.5 percent of the guarantee compared with France's 36.5 percent and Luxembourg's 3.0 percent, would like France to undertake a larger share of the burden.