EN ECB-PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 15 April 2013 
on the framework for State guarantees and on State guarantees for  
Dexia SA and Dexia Crédit Local SA 
(CON/2013/27) 
 Introduction and legal basis 
On 9 April 2013, the European Central Bank (ECB ) received a request from the Nationale Bank van 
België/Banque Nationale de Belgique  (NBB), acting on behalf of the Belgian Ministry of Finance, for an 
opinion on a draft law amending the Law of 22 Februa ry 1998 establishing the Organic Statute of the 
Nationale Bank van België/Banque Na tionale de Belgique (hereinafter the ‘draft law’). The ECB was 
requested to deliver an opinion as a matter of extreme urgency. 
The ECB’s competence to deliver an opinion is based on Article 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the sixth indent  of Article 2(1) of Council Decision 98/415/EC of 
29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft 
legislative provisions1, since the draft law relates to rules app licable to financial institutions insofar as 
they materially influence the stability of financial institutions and markets. In  accordance with the first 
sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council 
has adopted this opinion. 
 1.  Purpose of the draft law 
1.1  The changes introduced by the draft law are twofold: (i) it will introduce a ceiling on the amount in 
respect of which the King may establish a guarantee of the State by royal decree under Article 36/24 § 1 of the Law of 22 February 1998; an d (ii) it will confer statutory law status on the 
Royal Decrees establishing a State guarantee for Dexia SA and Dexia Crédit Local SA (hereinafter the ‘Royal Decrees establishing a State guarantee for Dexia’)
2. 
                                                 
1  OJ L 189, 3.7.1998, p. 42. 
2  These Royal Decrees are: (i) the Royal Decree of 18 October 2011 granting a State guarantee covering certain liabilities 
of Dexia Crédit Local SA; and (ii) the Royal Decree of 19 December 2012 amending the Royal Decree of 
18 October 2011 granting a State guarantee covering certain lo ans granted to Dexia SA and Dexia Crédit Local SA. The 
ECB opined on an early draft of these decrees in its Opinions CON/2011/79 and CON/2012/100. All ECB Opinions are 
available on the ECB’s website at www.ecb .europa.eu. According to the Explan atory Memorandum, the annulment of 
these Royal Decrees is currently being sought  before the Belgian Administrative Court ( Raad van State/Conseil d’État ). 
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2 1.2 Article 36/24 § 1 of the Law of 22 February 1998 empowers the King, in the event of a sudden 
crisis in the financial markets or a serious threat of a systemic crisis, and on the advice of the NBB, to adopt by royal decree certain measures aimed at  limiting the scale or the consequences of such 
crisis. This provision, originally adopted in 2008 by the Belgian legislator, empowers the King to 
adopt by royal decree derogations to certain specifi ed existing laws, or to establish a framework for 
establishing a State guarantee covering defined types of liabilities or assets of financial 
institutions
3. Under the draft law, the power of the Ki ng to establish a guarantee of the Belgian 
State will be limited to EUR 25 billion4 in total. This limit applies at group level (i.e. to related 
institutions within the meaning of the Belgian Companies Code), but not to institutions which are linked as a result of the exercise of control over th em by the State. The ceiling only applies to the 
principal amount of the guarantee, but not the interest and incidental costs beyond that amount, which may also be covered
5. In addition, the draft law clarifies that subsequent exchange rate 
developments which would bring the amounts guara nteed above the threshold will not affect the 
validity of the guarantee. Furthermore, the ceili ng applies only to State guarantees established by 
the King under Article 36/24 § 1 of the Law of 22 February 1998, and is without prejudice to the 
powers of the Belgian Parliament to establish a guarantee of the Belgian State for a higher amount. 
1.3 The draft law will confer statutory law status on the Royal Decrees establishing a State guarantee 
for Dexia, through a legislative mechanism called ‘ratification’ in Belgian law. Following their 
ratification by the draft law, the Royal Decrees establishing a State guarantee for Dexia will acquire the same legal status as statutory legislation enacted by Parliament, with effect from their respective dates of entry into force
6. This ratification will only modify the position of the Royal 
Decrees establishing a State guarantee for Dexia in the hierarchy of legal acts in the Belgian legal system, and will not affect the substance of th ese Royal Decrees, whose provisions will remain 
unchanged. 
 2.  General observation The ECB understands that the draft law aims at reinforc ing legal certainty with regard to State guarantees 
granted by the King in the event of a financial cr isis. The ECB generally takes a favourable view of 
initiatives of national authorities aimed at enhancing le gal certainty and financial stability. It is, however, 
primarily for national authorities to assess the legal sound ness of the instruments used  to achieve this aim, 
in the context of their specific domestic constitutional order. 
                                                 
3  These include: (i) liabilities entered into by certain supervised  institutions, including direct or indirect subsidiaries, or 
certain claims held by these institutions; (ii) losses incu rred on certain assets or financial instruments by certain 
supervised institutions; and (iii) liabil ities entered into by entities whose ac tivity consists of acquiring and managing 
certain assets held by supervised in stitutions (respectively, Article 36/24, § 1, 2°, 4° and 5° of the Law of 
22 February 1998). 
4  New Article 36/24, § 3, of the Law of 22 Febr uary 1998, introduced by Article A of the draft law. 
5  See Explanatory Memorandum. 
6  Article B of the draft law; Explanatory Memorandum. 
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3  
3.  Specific observation The Royal Decrees establishing a St ate guarantee for Dexia will not be subject to the ceiling introduced 
by the draft law, as they will be given statutory la w status. The ECB understands that, in any event, the 
ceiling to be introduced by the draft law will not a pply to State guarantees that have been established 
prior to its entry into force
7. From the perspective of legal clarity, the ECB notes that the draft law itself 
does not specify the date of entry in to force of the ceiling and its effect with regard to existing State 
guarantees. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 15 April 2013. 
 
[signed] 
 
The President of the ECB 
Mario DRAGHI 
                                                 
7  See Explanatory Memorandum.