The governments of France, Belgium and Luxembourg on Sunday reached an agreement over a restructuring plan for Franco-Belgian bank Dexia, according to reports. The plan will be presented at the bank's board meeting later in the day.

"The suggested solution, which is also the result of intense consultations with all partners involved, will be submitted to Dexia's board of directors for approval," reports quoted Belgian caretaker Prime Minister Yves Leterme as saying.

Dexia is the first victim of the European debt crisis and rescuing the bank is essential to prevent a contagion of the debt troubles.

French President Nicolas Sarkozy is meeting German Chancellor Angela Merkel to find a solution to end the region's economic woes and to discuss strengthening Europe's banking system.

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