OREANDA-NEWS. Karel De Boeck, Chief Executive Officer of Dexia SA said: “This quarter, Dexia reached the target scope as set in its orderly resolution plan. This important step was an opportunity to specify the Group's mandate as well as its strategic goals and to launch a reflection on the way to optimize its operating model, in the framework of a company project.

In addition, in a prudent approach, we have started building up liquidity reserves, in anticipation of major upcoming redemptions.

The quarter also saw the first application of Basel III regulatory framework, impacting in particular solvency ratios. Despite the impact of this new framework, the Group's solvency remained in line with the target set in the orderly resolution plan.

Together with the different teams of the Group, we remain committed to the management the Group's resolution and the preservation of the interests of the State guarantors and shareholders.”

The first quarter 2014 provided a contrasted economic picture. Euro zone growth remained modest, with an estimate of GDP growth at 0.2%, while in the United States and the United Kingdom the recovery progressed at a lively pace as emerging economies faced a slowdown of activity. In view of the weakness of growth and inflation, the European Central Bank continued to provide access to liquidity. The timetable for tightening of monetary policies by major central banks, however, will be a key issue for 2014.

The financial markets remained favourable, which allowed a continuing normalisation of sovereign debt issues in the euro zone, the tightening of peripheral spreads, improved equity markets and historically low volatility.

During Q1 2014, the Dexia Group completed all the disposals required under the orderly resolution plan, thus reaching its target scope as a bank in resolution. The quarter saw a further decrease in the Group's funding costs. Total Capital ratio was at 16.9% after the first application of the CRD IV / CRR rules.