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Dexia to Get Cash Infusion of $9.2 Billion

TSC Staff

Dexia will receive a state-backed rescue of 6.4 billion euros ($9.2 billion) after worsening financial markets drove the shares to a record decline, Bloomberg reports.

Belgium's federal and regional governments, France and the company's largest shareholders will supply the funds, according to a statement from Belgium's prime minister Tuesday.

Dexia is the world's biggest lender to local governments, according to Bloomberg.

The capital infusion for Brussels- and Paris-based Dexia comes two days after Belgium, the Netherlands and Luxembourg injected 11.2 billion euros into Fortis, a Belgian financial-services company. That rescue was in addition to Britain's decision to seize Bradford & Bingley , and Germany's bailout of Hypo Real Estate .