State guaranteed funding

Dexia Crédit Local is funded on the markets via a guarantee granted by the Belgian, French and Luxembourg States

The Dexia Group's funding strategy is principally based on the issuing of State guaranteed debt in the short and long term. The latter transactions are carried out in euros, US dollars and pounds sterling and take the form of public transactions (“benchmarking”). Dexia Crédit Local is also active in the “repo” market segment.

The key terms of the 2013 funding

Within the framework of Dexia Group’s orderly resolution plan, an explicit funding guarantee was granted to Dexia Crédit Local by the Belgian, French and Luxembourg States. The guarantee, which came into effect on 24 January 2013, was granted by force of law in each of the three States.

It enables Dexia Crédit Local to borrow up to EUR 85 billion in principal. The outstanding principal amount under the guarantee is disclosed on a daily basis on the National Bank of Belgium website.

Total outstanding amount of State guaranteed obligations under the 2013 agreement

The maximum maturity of the securities issued under the guarantee has been set at 10 years in order to enable the Group to refinance its assets over the long term. To benefit from the guarantee, the loans must be issued no later than 31 December 2021.

The guarantee is irrevocable, unconditional and payable on first request. In particular, the guarantee is also several and not joint, which means that if the guarantee is called upon, each guarantor will be obliged to fulfil its payment obligations only to the extent of its proportional commitment set out under the guarantee (51.41% for Belgium, 45.59% for France and 3% for Luxembourg).

2013 guarantee agreement concluded between Dexia Crédit Local and the States

Rating and prudential treatment of securities issued under the agreement


The rating of the short and long-term debt guarantee programmes of Dexia Crédit Local are rated A-1+ and AA by Standard & Poor's, F1+ and AA- by Fitch Ratings and P1 and Aa3 respectively, with a stable outlook by Moody's, reflecting the outlook for the Belgian sovereign, the main guarantor.

Risk weighting

The National Bank of Belgium and the French banking supervisor confirmed that securities issued under the State guarantee benefit from a 0% risk weighting.

Official letter of the National Bank of Belgium

Official letter of the ACPR

Eligibility as a HQLA Level 1 asset for calculation of the Liquidity Coverage Ratio (LCR)

Delegated Act of the European Commission

Extension of the guarantee beyond 31 December 2021

On 27 September 2019, the European Commission approved the extension by the Belgian and French States of Dexia's funding guarantee for a further period of 10 years from 1 January 2022 for a maximum principal amount of EUR 75 billion.


Public transactions
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Programmes et Supplements
Characteristics of the government guaranteed funding programmes