We have until 2012 to sell the subsidiary

Eighteen months after having been saved by the Belgian and French States in the fall of 2008, the Franco-Belgian bank displays willingness to fly again its own wings. Pierre Mariani, its Chief Executive Officer, ensures that the reduction in programmed its leverage effect will ensure the viability of Dexia.

You are about to pass you the public guarantees to finance you markets. Is it not risky for the Bank beyond 2010

The output of the guarantees is the culmination of a process of reorganisation commenced in 2008. We have first abandoned the guarantees on financing within a month in fall 2009, and then on institutional repositories in February 2010. End of may, it was the turn of all funding less than a year. The last step we let tomorrow applies only to long-term financing. But we already looped our program for 2010. Better, then we we were set a reduction of our needs for funding of EUR 100 billion over two years, we have already exceeded EUR 110 billion at the end of the first quarter.

Have markets slowed the pace of your bond portfolio assignment

On the contrary, we have the advance. June 30, we closed our objective for the whole of the year 2010 with approximately 17 billion euros of assets transferred. Last year, we had reached this amount within a year. Our pace of assignments is accelerating, this with moderate losses, corresponding to a valuation haircut of the order of 0.6. Since the beginning of the month of may, which marked the entry into a new phase of strong disturbances, we could still yield almost 7 billion euros of assets without accepting high haircuts.

How you renew the 45 billion euros of guaranteed outstanding

We will not need to renew. For the moment, they are indeed finance portfolio bond placed in extinction. Its rate of assignment is as it should we avoid additional loans to refinance the loans when they come due from 2011. Our forecasts show that we will fund the overwhelming majority of our needs in the long term by secure obligations ("covered bonds"). It therefore strongly decreases our dependence on markets. In addition, this market segment is one that offers the most attractive refinancing costs.

What is your total exposure to sovereign risk

This exposure does not reflect a risk. Governments have implemented the rules of governance and the financial means to overcome difficult situations in Europe. European financial authorities reaffirm that there is no risk in this regard and I have no reason not to believe.

Are you ready to accept losses on the disposals imposed by Brussels

The priority is reducing our effect of leverage, because it is this most strongly contributes to the reduction of our need for funding. In this context, the first assignments we have most of the time made of resources and capital gains that have allowed us to cover financial charges or to accelerate the reduction of this leverage effect. We will continue to follow this philosophy. The question of possible losses is therefore not for the moment.

What insurance in Turkey

In view of the interest that creates this asset, we could convey immediately, but his activity takes the value at the rate of acquisition of new customers of DenizBank. The value of the insurance company is indeed essentially tied to its distribution agreement with our Turkish banking subsidiary, which conquers about 600,000 customers annually in its retail business. If a buyer is willing to pay this future growth by anticipation, I might consider an offer. If not, I prefer to wait. We have until 2012 to sell the subsidiary.

Expect of new job losses

The fall of 2008, the Board of Directors set a goal of reducing cost of 600 million euros, resumed in our commitments towards Brussels by 2012. Already having 360 million euros of savings, we need to identify additional savings EUR 240 million, it is arithmetic. Therefore, we are now engaged in industrial reflection on the improvement of our process that does not constitute a hardening of our policy. As in the past, we'll ensure to the maximum limit forced departures.

Close settlements

The expenses of the international network decreased by 30 since 18 months already, and it is true that a number of settlements have vocation to be closed. Half a dozen have already been, and we are reducing the portfolios and activities in Eastern Europe. We are also closed the branch of Dexia Bank Belgium in London, and we will no doubt take other complementary decisions. Finally, we close our implementation in the Japan before the end of 2011.

Adjusted Dexia, its model will be designed to evolve towards a split or towards an affiliation

The relief of the group through two subjects that today make these two unlikely scenarios. We must manage the extinction of our bond portfolio. Its size was 220 billion EUR, with average life of 10 years. At the end of June, it remains approximately 160 billion euros that have yet to be reduced by half by 2014. My second imperative is to identify the areas of development of the group. The project on the strengthening of the Bank of Belgium individuals is running for a year. The Turkey also achieved record results in 2009. We must now accompany the development of this asset, which should draw a substantial part of the growth of the group in the coming years. Retail activities represent some 55 of the revenues of the Group and were intended to represent 60 term.

Is your development in retail banking viable without affiliation

The issue is that if we have the resources to keep us at the highest level to our major competitors. In Belgium, we have about 4 million individual clients, which makes us a medium-sized bank. But our development projects and the level of our operation coefficient, which is 70, we give a margin of significant progression of our result. Shares of platforms or plants with other actors would be an option. This problem will arise in many banks in Belgium.

Regulatory developments will have an impact on the mutation of Dexia

Whether the solvency, liquidity, accounting or taxation, any regulation which applies to financial activities is indeed changing. The uncertainty prevailing on these four "Tee" could have significant consequences on the strategy and the perimeter of activity of all global financial groups. Nevertheless, the framework of our daily activity is clear for the next three or four years. He was hired in 2008 and validated by the European Commission. We already know that the actions that we now go in the direction desired by some regulatory developments.

Do you fear the Bank tax

I know not yet what will be its base and its perimeter. But I cannot help but consider the consistency of such an initiative: on the one hand the new rules of Basel III are meant to prevent new disasters such as those known in 2008, and the other tax is intended to fund to address future bankruptcy! More generally, who am struck about the consequences the toughening of prudential standards and new taxes that are not even applied by all countries. This will necessarily influence the cost of credit and the ability of banks to lend. It would still be a height that the European banks that lend much more to the economy that US banks are finally more penalized, and, for the benefit of the markets!

Banks could reduce their profitability rather than their credits...

Do not mistake: the banking system cannot function with a return of 5 own funds while the cost of capital is around 10 to 12! Below this threshold, there will be the destruction of value, and investors will turn away from this sector yet essential to the good health of the economy.