Communities: Dexia has paid their debt
 

Communities: Dexia has paid their debt

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This is an exceptional document today reveals LibĂ©ration. We obtained a confidential file of Dexia Credit Local bank (DCL), which lists the 5500 local government and public institutions that have subscribed the famous “toxic loans” between 1995 and 2009. The list, published in full on our website, shows that everyone is concerned: the right of communities and left, large urban communities as small towns … It certifies that at the height of the bubble, DCL was distributed to 25 billion euros to its clients. And, as estimated by the bank, the additional cost of these loans was valued at 3.9 billion euros at the end of 2009. This means that communities should pay a penalty of that kind.

For example, Antibes, which had borrowed 60 million would pay 21 million more than this amount. The Loire solve him, a slate of 22 million in excess of 96 million toxic loans and Dijon hospital should fulfill 31 million in interest for a loan of 111 million toxic.

Flow. Historic Bank local authorities, DCL is the first to pushing elected not to use the good old fixed rate loans. But it is not the sole responsibility: the Savings and Credit Agricole were also very active in this market. The Dexia document means in any case that the failure of some municipalities is no longer an implausible hypothesis. Because of past irresponsibility of banks and elected local authorities (cities, regions, departments, municipalities communities …) and local public institutions (hospitals, unions mixed economy …) have in their inventory accounts ‘toxic loans, that could sink completely. And at the same time, there are dozens of utilities that may be affected: nurseries, schools, colleges, roads, garbage collection … are funded by local authorities.

Stuffed. These issues should be addressed to the National Assembly today. Claude Bartolone, PS deputy, chairs a Commission of Inquiry on “risky financial products underwritten by local actors” and he planned to give voice to community leaders in trouble.

Bartolone is particularly concerned. As President of the General Council of Seine-Saint-Denis, he discovered in 2008 that his department under the leadership of the communists was stuffed with loans based on the comparative evolution of the Swiss franc, the euro, the yen and the dollar. He has since filed a complaint against Dexia and took the head of an association of highly affected communities. With the crisis of the summer, its critics find an increasing echo because of the rise of the Swiss franc, many municipalities have seen their interest rates rise to 10 or 15%.

But the addition could climb with loans that run until 2025 or 2030. The toxic loans have not finished rot community life. And taxpayers, who bear a double threat: increased local taxes and a lack of public services.


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