Belgium, France set for Sunday talks on Dexia: Belgian PM


BRUSSELS (Reuters) - Belgium and France will hold talks to determine the fate of stricken Franco-Belgian bank Dexia <DEXI.BR> in Brussels on Sunday, Belgian caretaker Prime Minister Yves Leterme said after a meeting of core members of his cabinet on Saturday.

The two countries plan to break up Dexia and provide state guarantees to cover a "bad bank" of assets.

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"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," Leterme said.

"We are ready for the final round of negotiations on the basis of good preparatory work."

(Reporting By Robert-Jan Bartunek; editing by Philip Blenkinsop)