Friday, 19 August 2011

A Belgian Bailout?

The Belgian parliament has been recalled to discuss the country's deepening financial crisis, and the Financial Services Authority (FSA) in the UK has asked British banks to give full details of their exposure to Belgian debt.

The Belgian stock market index has fallen to a two year low, and two weeks ago €7 billion was wiped off the value of shares in a single day. Dexia Bank reported a loss of € 4billion in the second quarter of this year, more than the bank is actually worth (3.2 billion).

Against this background, the Belgian government is uncertain as to who should draw up the budget for 2012!

The whispers are that Belgium will be seeking a bail-out before the end of the year.

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