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1. Guarantee Agreement of December 9, 2008
The Belgian, French and Luxembourg States signed an agreement with Dexia on December 9, 2008 setting out the arrangements for implementing the temporary guarantee plan offered by the three States on October 9, 2008 (hereafter the “Guarantee Agreement”). This guarantee scheme covers Dexia's liabilities towards credit institutions and institutional counterparties, as well as bonds and other debt securities issued for the same counterparties, as further specified in the guarantee agreement.
On this page you will find documents and information relating to this State Guarantee Scheme.
By identical letters executed by the Luxembourg, Belgian and French States respectively on March 19, March 25 and March 30, 2009 and countersigned by Dexia, the extension of the State Guarantee beyond the first 6 month term has been confirmed, in accordance with the decision of the European Commission of March 13, 2009.
2. Addendum of October 14, 2009 to the Guarantee Agreement.
By Addendum to the above-mentioned Guarantee Agreement of December 9, 2008, dated October 14, 2009, the Belgian, French and Luxembourg governments on the one hand and Dexia on the other, agreed to renew the guarantee scheme for a period of one year, until October 31, 2010 (hereafter “the Addendum of October 14, 2009”). This renewal also brings some modifications to the guarantee scheme and, among other, (i) the lowering of the cap of the outstanding guaranteed amount (from EUR 150 billion to EUR 100 billion, with a commitment by Dexia to do its best efforts to limit the use of the guarantee to no more than EUR 80 billion, considering the improvement of Dexia’s liquidity position), (ii) the extension to 4 years of the maximum duration of the new financing issued under the revised guarantee scheme, (iii) the waiver by Dexia of the benefit of the guarantee, as from October 16, 2009, for all new Contracts with a maturity of less than one month and all Contracts with an indefinite term. The renewal and modification as provided for in the Addendum of October 14, 2009 have been duly authorized by an interim decision of the European Commission for a period of 4 months as from October 30, 2009 or until the final decision – if such decision is adopted before the expiry of such period of 4 months – of the European Commission in the context of the State aid procedure opened on March 13, 2009 (Decision C(2009) 1960 final corr. of March 13, 2009), on the compatibility of the aid granted to Dexia with community rules.
The text of the Addendum of October 14, 2009 as well as of its annex containing a coordinated version of the Guarantee Agreement as amended pursuant to said Addendum, can be downloaded by clicking on the link below.
3. Addendum of March 17, 2010 to the Guarantee Agreement.
By separate agreement dated March 17, 2010, the Belgian, French and Luxembourg States and Dexia amended and supplemented the addendum of October 14, 2009 to the Guarantee Agreement dated December 9, 2009 in order to, inter alia, reflect the terms of the final decision of the European Commission in the context of the State aid procedure of February 26, 2009 (Nr. C9/2009). The main changes include (i) advancing the expiry date of the guarantee on deposits (and equivalents) to March 1, 2010, (ii) advancing the latest issue date for guaranteed financings to May 31, 2010 (for financings with a maturity of less than 12 months) and to June 30, 2010 (for financings with a maturity of than 12 months), and (iii) a gradual increase of the remuneration payable by Dexia, pro rata temporis, if the outstanding amount of repayment obligations guaranteed by the States exceeds certain thresholds (increase by 50 bps if and to the extent the amount is higher than EUR 60 billion but does not exceed EUR 70 billion, by 65 bps if and to the extent the amount is higher than EUR 70 billion but does not exceed EUR 80 billion, and by 80 bps above EUR 80 billion).
A coordinated version of the Guarantee Agreement (as amended by the addenda dated October 14, 2009 and March 17, 2010) can be downloaded by clicking on the link below.
4. Operational Memorandum
In addition to the Guarantee Agreement , the three States and Dexia have entered into an “operational memorandum” supplementing that agreement on operational and procedural aspects. Notably, this operational memorandum, which remains into force in the context of the renewal of the Guarantee Agreement, provides for:
(i) a process for monitoring the guaranteed amounts on a daily basis, including the daily publication of the aggregate guarantee amount on the website of the Banque Nationale de Belgique (BNB) (see hyperlink below). Investors are thus able, on a daily basis, to monitor the total amount under guarantee compared to the total guarantee cap (EUR 150 billion until October 31, 2009 and EUR 100 billion as from November 1, 2009);
(ii) with respect to guaranteed bond issues of Dexia, a system of eligibility certificates whereby, on Dexia’s request, the States will issue certificates confirming for each bond issue that it is covered by the guarantee scheme. A list of all certified bond issues will also be published by the States on the website indicated below.
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