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Dexia to borrow EUR40bn from global investment banks to stop ECB financing

Franco-Belgian bank Dexia is attempting to secure a loan worth €40bn ($54.3bn) from global investment banks, in a bid to lessen financial reliance on the European Central Bank (ECB).

In an interview with a Belgian newspaper, Dexia chief executive Karel De Boeck was quoted by media sources as saying that the bank wanted to gradually stop receiving "Eurosystem" financing.

"The exercise will be to see how Dexia can issue €40bn in the markets at a lower price," De Boeck added.

It is expected that the financing will be a combination of instruments and the process might take many years to complete.

Due to subprime mortgages depression in the US and sovereign debt crisisin eurozone, Dexia lost billions of dollar and forced to accept three bailout packages.

In November 2012, France and Belgium agreed to provide a fresh capital of €5.5bn to Dexia for the third time in four years, to keep it floating.

France, Belgium and Luxembourg have offered €85bn of loan guarantee to the lender, which will be used to support the financing by the investment banks.

It had received two bailouts, first in 2008, to avert the global financial crisis, and another last year triggered by the eurozone debt crisis, when Belgium purchased its retail operations in October 2011, for €4bn.