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dexioPARIS: Bailed out Franco-Belgian bank Dexia said on Wednesday that its board had cleared the way for a 4.2 billion-euro ($5.8 billion) capital increase for its Dexia Credit Local unit, a provider of municipal loans.

The capital hike was needed "due to the recent developments of the Greek crisis and related impairments", Dexia said in a statement.

Copyright Reuters, 2010

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