I sold my Dexia bearer shares. I have not succeeded in selling my strips since the market for these is not very liquid. What can I do?

We would advise you to renew the order at any price that you passed to 0.01 euro, and to check regularly with your banker that it has been well maintained. Taking account of the very poor liquidity of this market, account must be taken of a longer or shorter period for the execution of the order.
You can also ask your banker to transfer your VVPR strips to CACEIS Investor Services, which provides a Dexia securities service to registered shareholders in France. You will doubtless have to bear the costs of the transfer. On the other hand, once your VVPR strips are registered you will not have to bear the costs of safe custody.

 Are VVPR strips quoted securities. What are they for?

VVPR strips are quoted securities, but on different and much less active markets than those for Dexia shares, quoted on the primary market both in Brussels and in Paris.
The VVPR strip is a tax instrument under Belgian Law. Its role is played at the time of payment of the dividend. It enables the shareholder who holds it at the same time as a share to limit to 15% the tax deduction levied in the form of a retention at source on the amount of the gross dividend attributed to the corresponding Dexia share.
In the absence of a strip, the initial retention is 25% of the gross dividend.

 What is a share savings plan?

A SSP is a tax-exempt product. It consists of a securities account linked to a cash account and enables advantage to be taken of the exemption from income tax on condition the sums are kept invested for a period of at least five years.
Dividends and capital gains are exempt from tax, with the exception of social security contributions at the applicable rate, 5 years after the opening of an SSP.

Any withdrawal prior to five years will bring about the closure of the SSP. At the end of eight years, partial withdrawals will not bring about the closure of the SSP.

 Is the Dexia share eligible for a SSP? What is the payment ceiling?

As a European share, the Dexia security has been eligible for a share savings plan since 1 January 2002. The cash payment ceiling has been at 132,000 euros since 1 January 2003 for a single person and 264,000 euros for a married couple subject to joint taxation and when each spouse is the holder of an SSP.

 Is there a tax credit attached to Dexia shares?

The endorsement to the Franco-Belgian Tax Convention fixed the tax credit attached to share dividends originating from Belgium at 15/85 of the amount of the net dividend, or at a rounded-up percentage of 18% of that net dividend.
This tax credit, chargeable on the amount of income tax does not vary in relation to tranches of income tax on physical persons.
In order for a shareholder of Dexia resident in France to benefit from this tax credit, he must enter on his next tax declaration of all income:
The gross amount of dividends received: line DC (ex 0.81 EUR per share for 2006)
The amount of tax credit relating thereto: line TA (ex 0.12 EUR per share for 2006)