Dexia bailout spells trouble for Belgium and France, say analysts
The nationalisation of French and Belgian banking group Dexia on Monday has put the spotlight on France and Belgium for future credit downgrades from rating agencies.
On Monday, an agreement was reached between Dexia's board of directors and the Belgian government to buy the lender, with the exception of its asset management operations, for €4 billion ($5.5 billion), in a deal that will also see the state provide guarantees worth €90 billion.
France and Luxembourg will also underwrite the lender
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