Annual report 2010 - Dexia.com

2010 and early 2011 highlightsManagement reportConsolidatedfinancial statementsAdditional information Annual financial statements2010FebruaryAgreement of the European Commission to theDexia restructuring planOn 5 February 2010, the Belgian, French and Luxembourggovernments and the European Commission concluded anagreement in principle on the Dexia Group restructuring planwhich was definitively ratified by the new Commission on26 February 2010. This agreement, which falls fully withinthe dynamic of the Group transformation plan, enables Dexiato continue to develop its core business lines on its historicalmarkets, France, Belgium and Luxembourg, as well as inTurkey.More detailed information is provided in the chapter “Updateon the transformation plan” in this Annual Report (page 13).MarchDisposal of the Assured Guaranty sharesOn 11 March 2010, Dexia finalised a secondary public offeringof 21,848,934 common shares in Assured Guaranty, in itspossession since the sale of the insurance activities of FSA toAssured Guaranty. The shares sold represent all the commonAssured shares held by Dexia. The transaction generated apre-tax gain of EUR 153 million.AprilClosing of the sale of Dexia Épargne PensionDexia closed the sale to BNP Paribas Assurances of DexiaÉpargne Pension, its subsidiary specialising in life insurancein France, following the sale agreement signed in December2009.MayJudgement by the Court of First Instance inBratislava on Dexia banka SlovenskoAt the end of the hearing held on 17 May 2010, the Court ofFirst Instance in Bratislava passed a judgement ordering Dexiabanka Slovensko, the Slovakian subsidiary of the Dexia Group,to pay the sum of EUR 138 million in principal, following anaction brought by a professional client in 2008. The appealfiled by Dexia lead to the cancellation of this first instancejudgement in January 2011 (see hereafter).JuneDexia fully exits State guarantee support for itsfuture fundingOn 30 June 2010, Dexia fully exited the State guaranteeliquidity framework put in place in October 2008. Consideringthe improvement of its liquidity situation and in line with theundertakings it made to the European Commission, the Groupceased to issue guaranteed debt four months earlier thanthe agreed expiry date of 30 October 2010. The exit processwas conducted gradually, Dexia waiving the benefit of theguarantee for contracts with a maturity of up to one monthand contracts with no fixed maturity as early as October 2009.Then the Group ceased to use the guarantee for its depositcontracts, particularly interbank deposits, from 1 March 2010,finally to cease all recourse to that funding at less than oneyear on 31 May 2010 and for its medium and long-termfunding on 30 June 2010. All outstanding instruments issuedunder the government guarantee framework before 30 June2010 will continue to benefit from the government guaranteein accordance with their terms and conditions. Guaranteedoutstanding will be fully written down in 2014.More detailed information on the State guarantee is providedin the note 9.4.C. to the consolidated financial statements inthis Annual Report (page 184).Dexia disposes of its stake in SPEDexia concluded an agreement with EDF on the sale of its6.13% stake in SPE, a company operating in the energy sectorin Belgium. The capital gain on this transaction amountedto EUR 69 million after taxes. This transaction was part ofthe agreement with the European Commission providing fordisposal of this holding by 31 December 2010.Dexia sells its holding in AdInfoDexia concluded an agreement with Network ResearchBelgium, a Belgian IT service provider, on the sale of its 51%stake in AdInfo, a company active in IT services for Belgianlocal authorities. The capital gain on this transaction amountedto EUR 14 million after taxes. The transaction was part ofthe agreement with the European Commission providing fordisposal of this holding before 31 December 2010.10 Dexia Annual report 2010