Belgium’s savers are stashing away enough money to convince bondholders that the nation’s debt remains lucrative even as the government cuts growth forecasts.
European leaders need a strategy for shoring up banks before plunging into the “sensitive” question of deeper-than-planned writedowns on Greek debt, Belgian Prime Minister Yves Leterme said.
King Albert II sought to prevent Belgium’s government from collapsing, urging Prime Minister Yves Leterme to make a new effort to stay in power at a time of economic and social crisis.
Belgian Prime Minister Yves Leterme is in London to promote Belgium as a place to invest and boost confidence among investors in the country that has failed to form a government more than a year after elections.
Caretaker Belgian Prime Minister Yves Leterme said the increase in yields on his nation’s debt is unjustified even as a seven-month political deadlock drags on.
Dexia SA, Belgium’s biggest bank, plans to pool its troubled assets into a “bad bank” with Belgian and French government guarantees to protect depositors and its municipal-lending business.
France and Belgium reached an accord on Dexia SA as the lender’s board meets to approve the proposals, paving the way for a dismantling of the French- Belgian bank.
A “bad bank” for troubled assets will be set up for Dexia SA and will have government guarantees, Belgian Prime Minister Yves Leterme said.
The French and Belgian governments pledged to support Dexia SA as shares of the lender plunged in Brussels on concern it will require a second government bailout.
"It is very important now for both the euro zone and the global economy that the shift can be made from tackling the problem of sovereign debt and of bank capitalization, shift from these two problems towards growth-enhancing policies."
- Yves Leterme on Jul 09, 2012