Belgian govt to nationalize Dexia bank

The Belgian government will nationalize a country's subsidiary of Franco-Belgian bank Dexia SA amid worries of possible eurozone crisis, De Standaard newspaper reported on Saturday. The decision may be announced officially this weekend, the paper said. De Tijd newspaper said this week worried clients withdrew over 1 billion euros from Dexia's deposits in September and 400 million euros on October 4 when the bank's shares hit an all-time low. Fitch Ratings agency on Wednesday put Dexia's financial stability rating of b+ on credit watch negative, while Moody's Investor Service put Dexia's banking financial stability, long-term deposit and priority debt rating on credit watch negative. The federal government of Belgium will become an owner of Dexia Bank Belgium for several years. Overall current stake of country's regions of Flanders, Wallonia and Brussels and the Belgian government in the bank stands at 15 percent, the paper also said.