Dexia almost collpased more than a year ago. But it’ll still be around in 2025, according to its wind-down plan.
Under the plan, Dexia said its balance sheet, which has shrunk 41% to €384 billion since the end of 2011, would shrink to €150 billion by end-2020 with a further “marked reduction” by 2025. The bank said in the absence of any major credit shock, 86% of its assets would have investment-grade ratings in 2020.
It will take less time for the Franco-Belgian outfit to unload its investments in two other banks and sell some of its units.
On Monday, Dexia said the revised resolution plan would give it a year to sell its holdings in Popular Banca Privada and Sofaxis and either sell or wind down Dexia Bail Regions, Dexia Bail, Dexia LLD and Dexia Flobail. Dexia would also have 12 months to sell its Dexia Israel unit.
Most other units, including Dexia SA itself, will be wound down over time until all outstanding loans mature. Belgium nationalized the domestic unit of the bank last year, renaming it Belfius.