Dexia board to meet to finalize breakup of bank

Agreeing to possible breakup of Dexia, the bank's board is scheduled to meet Sunday to discuss on how to divide the bank's assests, and protect the bank's depositors.

The board will meet at at 1300 GMT in Brussels, according to Reuters.

Yves Leterme, Belgian caretaker prime minister, was quoted by Reuters as saying, “Everything is ready for final negotiations with France. I have arranged with (Belgian finance minister) Mr Reynders and the French government that these negotiations will be in Brussels.”

Dexia, which has exposure to Greece, Italy, and Spain, is the first bank to be affected by the euro crisis.

Currently, Dexia is in talks to sell off its Luxembourg affiliate to international investors and the Luxembourg government.

Reaching consensus on how to dismantle the bank is important for Belgium, as credit rating agency Moody's has warned the country that its Aa1 government bond ratings may fall.