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EU Tobin tax threatens Dexia.

(SeeNews) - May 10, 2013 - If the Tobin tax on financial transaction is introduced in its currently proposed form, it would cost Belgian bank Dexia EUR 700 million (USD 910.6m), chairman Robert de Metz and CEO Karel De Boeck warned at a news conference.

Eleven European countries, including Belgium, are planning on introducing the tax to curb market speculation, among others.

According to estimates of the central bank, the eurozone levy on financial transactions would cost Belgium's four largest banks EUR 8.4 billion in total, including rest bank Dexia which deals a lot with repurchase agreements (Repos).

Dexia is 95%-owned by the Belgian and French states. If the Tobin tax undermines the group, this will cost the two countries much more than the tax can bring in, De Metz and De Boeck stressed.

(EUR 1.0 = USD 1.301)
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Publication:SeeNews Belgium
Date:May 10, 2013
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